I came to the same conclusion, based on some back of the envelope calcs, this is what I got from the HE1 results.
Assumptions:
Helium Flow Rate per well: 6,173 scf/d Price of Helium: $690 AUD Days in a year: 365
Scenario 1: One well with artificial lift
Flow Rate (mscf/d)
Flow Rate (scf/yr)
Revenue (d)
Revenue (AUD) (yr)
1
6.176
2254.24
$4,261.44
$1,555,425.60
Scenario 2: One well without artificial lift
Flow Rate (mscf/d)
Flow Rate (mscf/yr)
Revenue (d)
Revenue (yr)
1
0.834
304.41
$575.46
$210,042.90
"Preliminary economic and subsurface modelling by the Company demonstrates positive economics with artificial lift, and what is anticipated to be in the region of twenty to thirty development wells in the production phase."
I don't nearly know enough about economics or geotechnical engineering but if we assume that each development well has the same flow rate (big if, DYOR) then the yearly revenue would be between 30 - 45 m AUD revenue per year. I'm not sure how this bodes for Noble Helium's original target of 500 mscf/d (maybe I'm conflating the processing plant production ability with the flow rate target, please correct me if I'm wrong) but I'm keen to see the results next month along with how the market reacts to HE1.
GLTAH, DYOR, TINFA
NHE Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
