B
NL's potential of 13.4bcf of helium is worth by my calculations about US$3.75b of inground value at US$280/mcf if sold in bulk for long term contracts. Even more if some sales at US1000/mcf + in the spot market.
If 8% helium concentrations are proven and 13.4bcf of helium were to go from a speculative prospective resources to proven reserves it looks BNL would have a bright future indeed.
8% being a big factor in my opinion as breakeven is about 0.3% for joint helium/natural gas projects and about double that 0.6% for pure play helium projects from what I have seen. Good from a green perspective pure helium play but missing out on those natural gas revenues which are spiking as we speak and the helium concentration needs to be higher to be viable.
Bear in my mind per Edison the average helium concentrations in the US in proven reserves are only 0.35%. 8% is incredible in comparison but questionable as BNL is yet to drill? And 8% appears to be from results BNL does not have an economic interest in? Yet 8% is showing in the BNL presentation for BNL? Has BNL drilled and confirmed 8% ?
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