RE: The staircase!25 Jul 2025 09:58
It’ll be one well producing by end of summer. Once they commission the PSA others will be piped in…
5th June RNS
“….. The proceeds from the Fundraising will be used to fund the drilling of a 4th and 5th production well at Rudyard as well as providing capital for plant construction, general working capital purposes and for supporting the Company's strategic objectives of entering first helium production by the end of summer 2025 and accelerating project ramp up to full scale production.”
My comment aligns with what has been said in interviews.
As for the £1 obviously it is dependent on progress but there are lots of catalysts in addition to just full scale production. Imo full scale production and cashflow are really on a predictable trajectory which should materialise over the next 8 months or so.
Sometimes once the market (sentiment) sees that it’s going well it may include that in the price early. That’s why when RNS’s land price sometimes drop as folk sell the news.
An offtaker will take hex seriously when one well is hooked up. Then they can sit around the table. The price they get from 1 well will be much less imo than what they get from 5 wells. 5 wells is security of contract and will demand a premium for 25 years of helium supply. So don’t be surprised to see the first price for ‘clearing the tubes’ at $300mcf and then with 5 wells a contract at 3x that with a price alignment formula of sorts.
I maintain the turbo will come from Iggy and major offtakers. The flow test, the ops hook up, the reserves booking will all be reflected in just an underwhelming (for us) steady climb.
Hydrogen and offtake plus tax changes are the dark horses. When, well it’s closer now than it was at the beginning. That’s all one can really say.
GL
Usual caveats
Trek
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