commercial helium balloons , page-31

In reality - none of the information in todays ann is new except from the 15 BCF comment. Most of this was announced to the market over a month ago.

Personally more interested in the Mt Kitty and Wells prospects containing 3.164 TCF, and 190 BCF He UGIIP rather than Magee, though given magee has been proven before it makes more sense to drill it again.

Once again any revenues from He will take years to get off the ground - if proven - the logistics and infrastructure are the long lead items.

Generally helium is an extremely volatile commodity, Linde are selling it anywhere from $100-$200 fluctuations. The US land bureau price is around $62.00 mcf with a high crude content hence from my understanding its not like it is “grade a” helium which will be produced here commanding the higher price . Interestingly Linde are currently looking at substantial development opportunities in Qatar hence any significant discoveries over there with subsequent supply coming online over the years will reduce helium pressures quite a lot keeping in mind the current high price is due to a lack of global discoveries and supply. I have a feeling the current global economy will also taper off demand temporarily but prices will remain high due to the amount of nuclear reactors that are planned to come online in the next 5-10 years.

Its interesting that HeN have the intention to sell their helium to the chinese for reactors – problem with HeN is that they lack technical expertise in Helium itself as we all know that HeN is made up of a group of finance brokers suspected of using HeN as a vehicle - hence chances are they will look to talk to Linde to ultimately produce and sell off their interests. IMO - They just do not have the capacity or know how to really exploit the prospect effectively without help.

That said, the facility here for Australia is on track to be opened in 3Q09 or being conservative for delays (even though all equipment is ready to be taken to site), mid 4Q09. The facility will be taking in approximately 5 BCF of offtake dregs from Bayu Undan (0.3% field hence 3% concentration in offtake) to produce 150 Mmcf p.a with most of the product being distributed to the Asia/Pac region – china predominantly. Amazing to think that if CTP were to hit even just a 3%+ concentration in the Amadeus at the well, once stripped it could potentially mean a 30% dregs pipeline, yet we are talking 6.3% at the well from historical data.

Interesting times ahead – any discovery IMHO by HeN/CTP will see that MOU with Linde turn into something a lot more firm and I’d suspect that Linde will partner in drilling additional wells and providing associated infrastructure after the predominant partners work out what they will be doing with the primary gas component! Helium is the tail end of processing….

But as said earlier – its going to take years to monetise any gas/helium reserves.