NHE (Noble Helium) is in the final days of its first drilling campaign. Its first well Mblele1 reached Total Depth (TD), and on 6th Nov 2023 the Company declared that preliminary results point to a discovery. Lab results that will affirm the discovery or otherwise are expected to be announced in mid December.
On the preliminary results, the Company has said "Mbelele-1 has also demonstrated exceptionally good quality reservoirs likely to be capable of delivering high flow rates as well as good quality potential sealing formations, including a thick seal section at the bottom which separates the formations tested in Mbelele 1 from the deeper targets which will be targeted in Mbelele-2."
The Company spudded it's second deeper well in the same structure Mbelele 2 on 16th November "Mbelele-2 will be drilled to approximately 850m in multiple stages over the coming weeks."
The company should have lab results from Mbelele 1, and hopefully reach Total Depth at Mbelele 2 within 28 days.
The Mbelele reservoir is the first of multiple plays they have in the region.
The company has an active Youtube Channel, with some helpful interviews for those not expert in Exploration. https://www.youtube.com/@Noble_Helium/videos
The Company appointed another NED in September with M&A experience, who would be helpful in negotiating deals in the event of a discovery.
"Mr Columbus has over 30 years of experience in the energy, and oil & gas sectors around the world including technical, commercial, executive and non-executive roles. He is an experienced company Director with commercial, strategy, corporate finance and legal experience. Greg has gained valuable business experience in delivering large, complex energy, and oil & gas projects and has along the course of his career, demonstrated strong strategic vision as well as successfully leading numerous M&A activities."
I hold shares, and would buy more at the current price if I was not already grossly overweight from a diversification viewpoint.
While this post is a short term tip, my plan is to hold until the real value of the assets the Company is sitting on are realised, which I would expect can only really happen by an industry play for the scarce and valuable resource that helium is, or by reaching production and moving to being able to be valued on a PE. Their presentation to the Noosa Mining Conference gives some metrics of what production metrics could look like.
