Ann: Drilling Complete Transitioning to Commercial Production, page-4

Dont get your hopes up just yet..

Sales contracts is what is needed..

Great—here’s a high-level breakdown of the 10 June 2025 Galactica drilling update and how it relates to BNL’s potential to hit the $0.01 option strike price:

Key Takeaways from the Release

1. All Six Wells Successful

All six wells from the 2025 Galactica drilling campaign (plus State 16) show consistent, commercially viable helium and CO₂ flows—this validates the field and accelerates the timeline for production commencement.

2. Transition to Commercial Production (H2 2025)

• Initial production will begin via the Pinon Canyon Plant in H2 2025.
• The plant design, equipment mobilization, and tie-in activities are already in progress.

3. Well Flow Rates

The seven wells (State 16 and six Jackson wells) exhibit the following potential stabilised flow rates:

Well	He%	CO₂%	Flow Rate (Mscfd)	Max Rate (Mscfd)
State 16 SWSE 3054	2.17	61.56	250–350	441
Jackson 31 SENW 3054	2.20	69.00	300–400	500
Jackson 4 L4 3154	1.18	85.93	250–350	450
Jackson 29 SWNW 3054	3.30	48.66	350–450	550
Jackson 27 SESW 3054	0.41	98.31	350–450	550
Jackson 2 L4 3154	1.22	77.77	300–400	500
State 9 SWSE 3054	1.52	80.48	400–500	600

These are substantial flow rates, especially the State 9 and Jackson 29 wells, with high helium concentrations.

4. Phased Growth Strategy

• Phase 1: Initial tie-in and production from the current wells.
• Phase 2: Additional drilling (6–10 wells already identified; 20–30 more in pipeline), plus CO₂ monetization.
• Potential for a second processing facility based on Pinon Canyon success.

5. Marketing & Offtake

• Actively developing offtake agreements—key for revenue visibility.
• Focus on long-term contracts, reducing price volatility.

Financial Relevance: Can This Drive BNL Past $0.01?

BNL’s ability to exceed the $0.01 option strike price depends on how the market prices in cash flows and derisking from this production phase. Here's why it could:

✅ Bullish Catalysts

• Commercial Production Start: Set for H2 2025; a strong market trigger.
• Flow Rates: High enough to support early and scalable revenues.
• Offtake Agreements: Expected to de-risk revenue.
• JV Model: Though 50% of revenue is shared, the CapEx burden is also reduced.
• CO₂ Monetization: Not priced in yet, but adds future upside.

⚠️ Risks to Consider

• Execution delays (plant construction, regulatory).
• Helium pricing volatility.
• Market’s ongoing hesitation due to option overhang (468M options), which may cap near-term price appreciation until derisking fully priced in.

Strategic Forecast

To justify a post-option price of $0.012 or higher, the market will likely need:

• Proof of stable helium sales and revenue (likely post-H2 2025).
• Expansion drill results or second plant approval.
• Positive helium pricing environment.

Remember to confirm numbers as I am just throwing this in on the phone..