Total Helium (TOH) I will make some considerations. The ex CEO in a podcast for “Stock to Wash” a few months ago said that every well-connected person made $100,000 a month. He assumed an average flow of 230 MCF per day and a sales value of $500/MCF for Linde. New wells have already been modernized, producing 450 MCF/d and Linde will pay this US$500 only for the first 10. Helium from the remaining wells will be sold on the spot market (price ranging from 700 to 1000/MCF).
Considering that the company will have 25 wells producing at the end of the 1st quarter of 2024, I made some calculations being conservative. Price of 500 for all the wells and flows that the CEO mentioned.
US100,000/month per well X 25 wells X 12 months / 2 (Total Helium
has 50% of the project) = 15 million per year.
Total Helium is currently valued at US$8 million!!!
The production cost is very low so the net margin will be very high and tends to increase as more wells are drilled and connected to the gas pipeline.
The company has the possibility of giant and rapid expansion.
With annual revenue of 1 well ( 1.2 million) will be able to drill 5 new wells (220.000 per well).
It already produces Helio currently (lower risk).
The calculations were made only with the Arizona project, and only 25 wells. TOH still has the Kansas project.
For me the current price is a wonderful opportunity!!