RE:RE:RE:RE:Looking for opinionNone of my business but no position should be one"s only equity exposure. This project is only partially de-risked. We longs are relying on management claims currently as to resource quantity and expected selling price. Until an independent reserve report confirms these claims, reserve quantities are unknown. Furthermore, there is some question about their ability to sell to end users. Some purported customers may not be willing to deal with a single process plant supplier due to lack of redundancy. Therefore some volumes may have to be sold at wholesale, not retail prices.
Also, sustained flow rates for their wells will not be known until a production history is established..
We also must keep a sharp eye on the global He supply potential. High prices ele\icit new supply. This is a very tiny market. The Amur gas project by itself can add 30% to global supply when fully operational. DME can add another 30% at full maturity (70 wells). Nasco Energy is operational in AZ with 411 mcf of annual capacity, a 7% add to global supply. Can the price structure hold under the weight of these and other new sources of production?
I have 25% of my portfolio invested here and will continue to add as these issues are resolved. But, do not think for a moment that this project is without risk. GLTA.