TSXV:RHC - Post Discussion
Post by
Margin321 on Jan 27, 2024 8:07am
Aticle on Avanti Helium
Interesting article produced as promotion piece for Avanti Helium. Their costs will be much higher to produce five 9's helium. The have high flow wells with just over 1% helium. They have pools like NA Helium and RHC. They do not have a massive potential resource like Nazare. The article talks about the majors (especially Exxon) and some of the big industrial gas suppliers having intense interest in this space. Would really like to see testing of well at Val Marie. Also in next two years a horizontal well at Nazare to prove that concept. Lots of potential here. Just a lot of debt, production and cash flow starting very slowly, no ready access to capital (which is crucial). Unclear yet if management can develop partnerships or expand off take agreements to get clear path to robust growth.
Https://oilprice.com/Energy/Energy-General/Helium-Wars-Why-Are-Tech-Giants-Fighting-Over-This-Rare-Gas.amp.html
We are in a rather brutal little downtrend. Would love to see a bottom and the beginnign of an uptrend. It is going to take evidence the plant is working as designed, test results at Val Marie and Ogema and maybe testing of third Steveville well , a solid plan to develop the second location with a lower cost plant. Other items further out could include a development well at Val Marie, an exploratory well at Forty Fort, an exploratory well at Cadillac. Even further out is drilling of an expensive horizontal well at Nazare and finding a jV partner to develop that with multiple horizontal wells and a helium plant maybe 5 times the size of the Steveville plant. Development of liquid helium plant in Saskatchewan will fit in somewhere as a positive. There is a huge amount of opportunity. What they need is ready access to capital and administrative and operatonal excellence.
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