Member Info for Toffers

1. Confirmed contingent helium resources

For the Itumbula discovery area, the CPR estimated:

2C contingent resources: ~296 million cubic feet (MMscf) of helium

3C contingent resources: ~1.35 billion cubic feet (Bcf) of helium

What that means

In resource classification:

2C = best estimate of recoverable resources

3C = high case / upside scenario

So the CPR suggests something like:

~0.3 Bcf (base case)

~1.35 Bcf (upside case)

But these are still “contingent resources”, not reserves.

That means they depend on:

further appraisal drilling

economic confirmation

development approval

2. Much larger prospective resources across the licence

Outside the Itumbula discovery, the CPR identified additional exploration targets within the 480 km² mining licence area.

Estimated prospective helium resources:

709 million cubic feet (2U)

3.23 billion cubic feet (3U)

Prospective resources mean:

helium might be there

but no well has proven it yet

3. Development concept proposed

The CPR also modelled how the field could be developed.

Proposed phases:

1️⃣ Early Production System (EPS)

~5 wells initially

2️⃣ Appraisal phase

~15 wells to better understand the reservoir

3️⃣ Full development

~66 wells in total with a central processing facility

This shows the report assumes a large multi-well field development, not just a single well.

4. Important classification: “Development on Hold”

The CPR classified the contingent resources as:

“Development on Hold.”

This does not mean the project is bad.

It simply means commercial development depends on:

more technical data

project financing

final development planning

5. The separate CPR on the Tai prospect

A separate earlier CPR for the Tai Prospect estimated:

2U prospective helium: ~2.8 Bcf

3U prospective helium: ~7.1 Bcf

But again:

these are prospective (unproven)

drilling is required to confirm them.

✅ What the CPR really tells investors

Positive signals

Independent auditors confirmed helium resources exist

Potential multi-BCF upside across the basin

Development scenario has been modelled

Remaining risks

Only a small portion is contingent resources

No booked reserves yet

Requires more wells and financing

✔️ Simple interpretation

The CPR basically says:

“There is credible evidence for a commercial helium accumulation at Itumbula, with potentially much larger upside elsewhere in the licence — but it still needs more drilling and development work.”

Why do you think they are now stated in February "Strategic farmout process to commence to identify and select a suitable industry partner"?

They know they need to bring it on fast!

NOW IS THE TIME!

The separate CPR on the Tai prospect

A separate earlier CPR for the Tai Prospect estimated:

2U prospective helium: ~2.8 Bcf

3U prospective helium: ~7.1 Bcf

"The Tai Structure is considered the highest upside exploration target in the Rukwa Basin because its size and geological trap characteristics could theoretically hold a very large helium accumulation."

same source

Nite

"Some geologists believe the biggest upside for Helium One might not even be the Rukwa Basin well currently being tested. There’s another structure in the basin that could theoretically be several times larger."

same source

It is a balanced view, it gives the pros and cons, just do it for yourself if you can be bothered.

For Kread

5. What could dramatically increase the share price

For exploration companies like Helium One, the share price often jumps when one of these happens:

Large independent resource estimate

Major industry partner joins

Commercial flow rates confirmed

Development financing secured

Any of those can significantly change the company’s valuation.

And are now trying to scramble back in? I think we can see who they are!!!!

Take it up with Chat Blu!!!! If they're happy to put it out there, then so am I!! By the way, how many times has McNol picked you up on actually posting misinformation?? tut tut

For kread

Current evidence for commercial viability

1. Helium concentrations are high enough

Recent testing showed:

Average helium concentration: ~5.4%

Peak concentration: ~9.2%

For context:

Many commercial helium fields operate with 0.3–1% helium.

Concentrations above 5% are considered very strong.

So the grade of helium looks commercially promising.

2. Helium is a scarce but critical resource

Helium (Helium) is essential for industries such as:

MRI scanners in hospitals

Semiconductor manufacturing

Space rockets

Fiber optics and electronics

The biggest global suppliers have historically been:

the United States

Qatar

Algeria

But supply has been tight for years, creating repeated global helium shortages.

That’s why a new large source could be very valuable. 📈

3. Helium prices are much higher than natural gas

Helium is extremely valuable per unit.

Approximate wholesale values (vary widely):

Natural gas: ~$2–$4 per MMBtu

Helium: $200–$600+ per thousand cubic feet

So even small volumes can be commercially important.

4. The Rukwa Basin discovery

Helium One’s flagship project is the Rukwa Basin in Tanzania.

Exploration wells there have reported:

high helium concentrations

evidence of flowing helium

multiple potential reservoirs

If these reservoirs prove large enough for sustained production, the project could become one of the few dedicated helium fields in the world.

5. Why investors see big upside

Exploration stocks like Helium One are often high risk but high reward.

If they successfully:

prove a large reserve

build processing facilities

start selling helium

the company’s value can increase dramatically.

But until then, they rely on fundraising and drilling results, which makes the share price volatile. ⚠️

✅ The big idea:

If the Tanzanian helium system works at commercial scale, Helium One Global Ltd could help open an entirely new global supply region.

A more positive type of “external investment”

Sometimes “external investment” means a strategic partner, which is often better for shareholders.

For example:

A large gas company funds development.

In exchange it receives a percentage of the project, not the whole company.

Benefits:

Less dilution

Technical expertise

Faster path to production

5. What investors usually watch for

With helium explorers like Helium One, investors pay attention to:

Flow rates from wells

Helium concentration (%)

Production timelines

Partnership announcements

Cash runway (how long before another fundraise)

These factors strongly influence the share price.

What “seeking external investment” might involve

For Helium One this could mean:

Issuing new shares (equity raise)

Investors buy new shares → company gets cash

Existing shareholders get diluted

Finding an industry partner (farm-out)

A larger gas/energy company funds development

In return it gets a percentage of the project

Convertible loans or financing deals

Investors lend money that can later be converted into shares.

Strategic partners

For example companies that help develop a helium field or build processing plants.

Why they’re doing it now

After successful testing in Tanzania, Helium One said it plans to seek partners and external investment to advance the Southern Rukwa project toward development and production.

What it means for shareholders

Positive: brings cash to move projects toward production

Negative: usually more shares issued → dilution

✅ Simple takeaway:

“Seeking external investment” means Helium One is trying to raise money from outside investors or partners to develop its helium projects faster.

" seek external investment to advance the project towards development"

mind you, the world has changed somewhat since that was stated in Feb!

1 and 2 could be providing a very healthy bidding war. China wants all. Linde probably want to replace the lost helium from the Qatar contract for its country. They were also looking for acquisitions. Fingers crossed.

MCNol, who is your money on?

Are rushing through now!

MCNol, that's a very workable suggestion, but I can't see HE1 giving up controlling interest. How would it work if Jacobs insists they maintain the controlling interest financially? we could take a loan for the extra we need to fund for, with pay back over a term of production? not sure if I'm making sense here, I know what I'm trying to say in my head!!!

There's some fast jets just gone over SW17! in a hurry by the sounds of it!

I'm thinking they might go for a mix - strategic partner (farm out) and private equity - bring on the Beluga Whale! That way, as I see it, it would mean we would not give so much away to a strategic partner in a % share?

"seek external investment"

When a helium company says it will seek external investment, it means the company plans to raise money from people or institutions outside the company rather than relying only on its own funds.

What “external investment” usually involves

The company may approach:

Venture capital firms

Private equity investors

Banks or lenders

Strategic partners (e.g., larger gas or energy companies)

Public investors if they plan to list shares on a stock exchange

In return, those investors usually get something such as:

Equity (shares/ownership) in the company

Debt that the company must repay with interest

Royalties or profit-sharing agreements

Why a helium company would do this

Helium exploration and production is capital-intensive, meaning it requires large upfront spending for things like:

Geological surveys

Drilling wells

Building helium processing plants

Storage and transport infrastructure

So the company seeks outside money to fund expansion or development.

Example

A helium exploration firm might say:

“The company will seek external investment to fund drilling and plant construction.”

That typically means it will raise money from investors to develop its helium fields instead of funding everything internally.

For investors

This can imply:

Potential dilution (new shares issued reduce existing ownership)

Growth financing (capital to move from exploration to production)

courtesy of the Chat!