From the Next Investors email sent this morning ..."A Globally...

From the Next Investors email sent this morning ...

"A Globally Significant Helium Discovery?
Bigger than anyone expected…
The initial results of the drilling are in…

Our Investment Noble Helium (ASX: NHE) has spent seven years working towards drilling two helium wells in a frontier, unexplored basin in Africa.

Helium is a critical input for rapidly growing high tech industries like semiconductors, artificial intelligence chips, nuclear power, space travel and cryogenics.

NHE is chasing potentially the largest helium resource in the world owned by a single company.

NHE has ten similar targets in their North Rukwa basin, with an estimated 176Bcf prospective helium resource.

(176Bcf is enormous by helium standards…)

NHE has just finished drilling two holes into just ONE out of TEN targets.

Only about 9% of the total prospective resource (15.7Bcf).

Which on its own could be a company making discovery…

At US$450/mcf and assuming ~75% is recoverable, that’s roughly about US$4.5BN worth of helium in the ground on just ONE out of TEN of NHE’s similar targets.

Because NHE’s other nine targets are all on a similar geological structure and model, success on the first target implies that the other nine similar targets will be successful too.

In oil & gas drilling, this is called a “string of pearls” concept - more on this later.

The preliminary results of two drills into the first target have just been released…

…now it turns out that it could be MUCH BIGGER than what was modelled and expected by NHE.

Mbelele-1 hit net reservoir thickness of 47.5m - 137% bigger than pre-drill expectations.

Mbelele-2 hit net reservoir thickness of 163m - 243% bigger than pre-drill expectations.

AND NHE estimates 2% to 3% helium content in samples taken.

NHE also says the reservoirs are of excellent quality with “good to very good permeability porosity” and “high mobilities”.

Across Mbelele-2 porosity was as high as ~18.4% - typically anything above 10% is considered good…

Reservoir quality can make or break a project - things like porosity/permeability ultimately determine whether or not valuable gas in a reservoir can flow commercially.

NHE is saying its reservoirs “have very high flow potential” AND NHE has already cased and suspended Mbelele-2 as a potential future producer…

So far, the results are based on the company’s wireline logging and sampling program…

Before NHE can officially declare a new “discovery” it has to send its samples to the labs and get them independently confirmed..

Again, if this first target is successful it implies that NHE’s nine other targets will be successful too.

Later today, NHE co-founder & CEO Justyn Wood, and Exec Chairman Shaun Scott and will be presenting at a virtual conference.

We expect to hear more detail on today’s results and next steps for NHE.

The presentation is at 2:50PM AEDT today, Monday 4th December.

It’s open to anyone to join - click this link to register your attendance and watch.

A Globally Significant Helium Discovery?

So far so good…

The helium samples NHE brought to surface have now been sent to independent laboratories for confirmation BEFORE an official “discovery” can be declared.

NHE’s drill results and reservoir thicknesses were so much bigger than expected that the company now needs to:

• remodel their reservoir estimates to accurately reflect the size, and

• run some new reservoir flow modelling based on the bigger numbers…

… before they are able to officially declare a discovery - and have the discovery independently certified by a third party.

So we have a few more weeks to wait for:

• Official and final % helium content from lab analysis… NHE’s estimate of 2% to 3% is already significant for helium concentrations.

• Updated reservoir modelling using the “bigger than expected” reservoir thicknesses from the two wells it has just drilled.

• Updated modelling that reflects the flow potential of the reservoirs intercepted.

Then hopefully if all goes to plan - the official declaration of discovery of a globally significant, primary helium resource.

In mineral exploration terminology - NHE has all the right indicators from the on-site “visual” results… it just needs the assay labs to confirm what it thinks it has found…

NHE says its next step is going to be to run a flow test on Mbelele-2, and that it has already started “positioning for commercialisation” (back in September).

Assuming a commercial discovery, back in September NHE said it can become a helium producer within 12 to 18 months of a discovery at Mbelele."