The significance of this announcement should not be underestimated. Whilst we have all suffered over the past few years TS's analysis and geological modeling has proven correct in this instance. The upgrading of the He to 2.17% in less than 12 months since initial discovery provides important credibility to BNL's analysis. Anything over 1.50% He in this district is quite commercial.
All of our other holes and especially those we are now drilling in the Jackson suite now need to have this methodology applied to it. i.e. it takes a bit of time to obtain the real He rates when applying reservoir's natural equilibration process near the well bore.
The fact that they can now say that State 16 recent Jackson 31 will be put into production is significant. The market is discounting these statements from the company due to issues of the past. However, a company cannot make such statements in such a regulated environment on the ASX unless there is real substance behind it. The fact that Helium One is stating the same "We currently anticipate that Jackson-31 will become a production well..." (Lorna Blaisse) means these set of Jackson wells are serious company makers for BNL (and IMO unfortunately also for Helium One - which will obviously look to position itself to secure a far bigger position in the wells....)
BNL Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
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