RE:RE:Down we go
DME results were pretty bad. The home page and the presentaion have been flashing the State 10-1 results (7.1% He) and the State 16-1 results (4.1% He) and then they report this exploratory well with tiny little slices of He bearing gas and 1.1 % He and no flow rates for any zone. They had talked of production Q4 2021 and now talking 2022 (likely very end so that moved a year.
I think what market is worried about with RHC is that the Rigolith might not flow. They got cores to study the best way to produce the well. RHC has also talked about production in Q4 2021, as outlandish as that seems when they have no flow rates, no pressure tests, no reserves, and have not determined if they can produce the Rigolith. Plus there may be a long lead time on some of the equipment they would need. Dropping the timeline for production back a year (like DME just did) could happen. If the Rigolith is not able to be produced that would be a big setback. If it can be produced that will be a major positive.
Helium is still a huge story. Qatar has spent a billion dollars for infrastructure to be able to extract relatively low concentrations from massive amounts of natural gas. Primary helium production will have an increasing role of companies (like RHC and also DME and also He 1) can pull it off. But it won't be easy and there will be ups and downs. I am thinking of adding a little RHC in this lull. If the Rigolith evaluation is poor, we will be able to get it cheaper. If it is very good, we won't be able to get more at this price. Wonder what the odds are?