Oilman Jim's Letter - September 5, 2024

Blue Star Helium (BNL.ASX BSNLF) announced that it has received firm commitments to raise A$3.0 million in gross proceeds via a placement of 750,000,000 new ordinary shares to institutional and sophisticated investors at an issue price of A$0.004 per share. Participants in the placement will receive one free option for every two shares subscribed for and issued, exercisable at A$0.01 and expiring two years from the date of issue. The placement is said to have been strongly supported by existing sophisticated, professional and institutional shareholders. Funds raised will enable Blue Star to advance helium development and exploration evaluation activities across its Las Animas County acreage in Colorado, including the Galactica-Pegasus and Serenity projects as well as the company’s continued exploration and acquisition strategy…more

Helium One Global (HE1.L HLOGF HE1.F), which recently farmed in for 50% of Blue Star’s Galactica-Pegasus project, announced a helium discovery in Tanzania following completion of its extended well test operations at Itumbula West-1 which successfully flowed a sustained average of 5.5% helium (air corrected) from the fractured basement and flowed a sustained average of 5.2% helium (air corrected) to surface from the faulted Karoo Group. The well flowed naturally at a maximum flow rate of 2,701 barrels per day of fluid on a 36/64ths of an inch choke setting, equating to 834 standard cubic feet per day of helium. The company claims its internal modelling demonstrates that this could increase to 20,000 barrels per day of fluid with artificial lift in the development phase. On this basis, Helium One estimates the actual flow rate would increase to 6,176 standard cubic feet per day of helium, when applying an average concentration of 5.5% helium. Preliminary internal financial modelling is said to demonstrate positive project economics with artificial lift and 20-30 additional development wells. The company is now integrating the results of the extended well test and finalising its feasibility study ahead of submitting a mining licence application…more

Bluejay Mining (JAY.L BLLYF S5WA.F) announced that its change of name to 80 Mile (80M.L) has been formally completed. This follows the successful passing of all relevant resolutions at the General Meeting and the company's expansion of corporate strategy to include the exploration and development of industrial gas and liquid hydrocarbon projects. 80 Mile's recent acquisition of White Flame Energy expanded its portfolio into the energy sector, adding large-scale licenses for industrial gas, natural gas, and liquid hydrocarbons in East Greenland. Further news is awaited…more

PetroTal (TAL.TSX PTAL.L PTALF SER1.F) announced an operational update. The 20H well has allowed for the evaluation and testing of the upper Vivian formation sand, which for the first time will be jointly completed with the main Vivian sand. So far, the company has only produced from the main Vivian sand, where permeability is an order of magnitude greater than the upper Vivian. As of year-end 2023, Netherland, Sewell and Associates estimated that about 20% of the 442 million barrels of 2P original oil in place at the Bretaña field is assigned to the upper Vivian sand, while all 2P reserves are allocated to the main Vivian sand. The 20H well design thus included a short test of the upper Vivian, to acquire crude samples and test production deliverability. During a brief production test, the upper Vivian flowed at an equivalent rate of approximately 320 barrels of oil per day of 18.6 API oil, which is of similar gravity to oil in the main Vivian sand. PetroTal has decided to complete the 20H well in both sands and once sufficient production data has been collected, the company will evaluate the possibility of amending its field development plan to include the upper Vivian, with a view to potentially including the unit in Bretaña's future 2P oil reserves certification. If expectations of low production of formation water volumes from the upper Vivian are confirmed, oil produced from that sand conceptually should not require additional water treatment facilities to be constructed. The well is now drilling ahead in the main Vivian sand target and is expected to be completed by the end of September…more

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BNL.ASX BSNLF HE1.L HLOGF HE1.F JAY.L BLLYF S5WA.F 80M.L TAL.TSX PTAL.L PTALF SER1.F