Helium One Global (the “Company”) (AIM: HE1), has been informed that the current operator of the Exalo drill rig in southern Africa has amended their contract with Exalo to allow for an extension of their operations for a period of up to twelve-months.
Through the execution of a non-binding Memorandum of Understanding, announced on the 22nd of November, the Company had understood that the Exalo rig was due to be mobilised to our Rukwa licence area in early 2023. The Company continued in good faith to negotiate detailed mobilisation and logistics arrangements until unexpectedly notified on the 2nd of January that contract terms between Exalo and the operator had changed.
The Company is reviewing a number of alternative rig options for Phase II Tanzania drilling operations and will announce an updated timeline to drilling once new arrangements have been confirmed.
David Minchin, Chief Executive Officer, commented:
"The decision by the current operator to pay rig retention costs rather than release the unit is both disappointing and frustrating. However, based on recent rig searches, the Company is aware of a number of alternative rigs for our Phase II exploration drilling. We are rapidly reviewing these options to inform the market with updated rig selection and timeline to drilling.
“The Company remains in a strong position based on a sound geological prognosis and with team, finances, and subsurface targets in place. We are committed to the delivery of a successful Phase II exploration drilling campaign as early in 2023 as possible.”
They released an RNS?! I always think it’s weird how many people on the forum read into and repost company tweets. They’re just mini bits of marketing and puff pieces for the most part. Hardly surprising if they haven’t tweeted this out.
That said I haven’t been following particularly closely but this is very unsurprising news. The management have proven to be a little shambolic at times!
So in a nutshell, the people currently using the rig are keeping it for another year rather than finishing and handing it over to H1? So back to square 1 again. Question I have though is if this was even a possibility why was a back up plan not in place, or better still, find a different rig?
Why would you put more in if you’ve lost confidence? Would that money not be better invested in something that you are confident about?
Doubling down on investments that are in a steady downtrend rarely works out. You can see the same thing in the CBX thread, or the Arrival one or the MGC Pharma one.
Anyone can make a mistake, I have a few Arrival shares, but what I don’t do is put more money in when it goes pear shaped
Yes i hold my hands up and admit it’s a mistake, keep averaging down.
I still believe there is Helium to be found there, i however don’t trust the current CEO to deliver the best possible outcome anymore, and as such would seriously consider cashing out if my average share price is achieved again.
I know the previous trend of the share price is not a particularly good indicator for this but if you look at the 1 year trend it “appears” like an almost identical 6 month cycle - almost like it was computer generated…
Then I realise it is and is a glitch on the graphic for 1 year trend showing same data twice…!
Have you tried requesting these companies? Not sure if it is something Freetrade can do.
With the economy and markets being so volatile at present, many of these new and upcoming companies face failure through no fault of their own.
