So the company leases the land to drill for helium off the ranchers & they have to get permits off the government body to drill helium wells on the land. These helium well take a lengthy time to get permitted and are more expensive to drill due to the type of drill's used and the infrastructure you have to build around them. To gather data of the land they lease, the company pays for the ranchers to drill water wells (the ranchers can use any water found for their land). These water wells don't have to go through a permit process, they are cheaper to drill & are valuable to gather data for BNL. Any helium that is found during the drilling of these water wells can't be extracted through that well so the company nor the rancher can extract it. However, if the company obtains a permit to drill a helium well right next to it, they can drill into the exact same gas column found during the water well drilling and extract the helium they have found. If you look at the map provided in the announcement you can see that for water well JXSN#2 there is a proposed helium well 'State 35' right next to it & for water well JXSN#1 there is a proposed helium well 'State 09' right next to it. One would assume that these 2 helium well locations have been targeted to drill into the gas column's announced today & BNL will own that resource.
Does that help?
*** Also anyone correct me if i'm wrong or can explain it better.
BNL Price at posting:
3.3¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)