Does anyone understand the helium market DME is selling into With so much pie in sky numbers published think about this.
1. DME says 26 million for first 5 wells and plant. Do they have the money to even start
2. Local competition for market. A company is producing hydrogen in the old fields and is asking for 9 more wells this year. You can go look the permits and name, a private company. Paradox plant in Utah to not far from border and is now producing helium and they can go to 500 mcfd. Their gathering lines run through northeast Arizona into New Mexico. A helium plant is running in the DBK field in northeast Arizona
3. These plants are not huge. Below is link to one of the largest built in North America. It can input approx 9,000 mcfd. So let's say we build this size and get 7 percent which 700 mcfd or about 5 trucks a day that hold 130 mcf. That is a hugh volume to market. It's a hell of a lot of money too. It will not be some local picking up a load that is a huge commitment by a big name to take on that helium. And since they do not show a huge storage tank in their diagram which costly and time consuming I not sure how this is going too work. I am worried it will be smaller volumes of input as I do not understand how this will be marketed.
We will make money and lots of it. But the company says around 9 million per well, 60 to 70 wells that puts it about 630 million say over 20 years or about 32 million a year when things takeoff. This makes sense since this is what they said. If we are this good, then hopefully we go big or put a whole bunch more units in to speed it up.
nice picture in article
In any business when prices go high many more options become attractive. We are best positioned by are numbers so we should the best source. But a lot of work needs done to get the most value. I like idea of a takeout
https://www.linde-engineering.com/en/about-linde-engineering/success-stories/hybrid-process-to-recover-helium.html