The 13.4bcf prospective helium resources of BNL are similar in scale to the recently proven 2P helium reserves of 13.6bcf of RLT which released NPV figures of AUD$1.4b to AUD$6b or $7 to $40 per share depending on level of dilution for them to raise capex of US$800m. Noting RLT potential to also monetize 2P proven reserves of 407bcf of methane. Noting RLT reserves are from only 14% of its projects land so maybe it could also be expanded substantially.
So RLT a potential pathway from about $3/share today to $7 - $40/share based on proven reserves.
BNL about a 90m market cap today and the NPV potential less than RLT as BNL is helium only but still potentially substantial.
To me the question mark on BNL is how much of the 13.4bcf prospective resources of helium can be converted into proven commercial reserves. To get 13.4bcf would need 100% successful drilling and flowrates everywhere and also 8% helium concentrations everywhere in the resource area(s) which seems unlikely? The proven play fairway seems to vary between 2.2% he and 8.8% he so can an average of 8% be achieved? So interesting to see going forward what can be proven into reserves by BNL.
BNL Price at posting:
6.2¢ Sentiment: None Disclosure: Not Held
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