{"id":34688,"title":"Helium One Edges Closer to Commerciality According to Investment Bank","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-08-27T10:00:04+00:00","modified":"2024-08-27T10:35:44+00:00","canonical_url":"https://stockmark.it/helium-one-edges-closer-to-commerciality-according-to-investment-bank/","markdown_url":"https://stockmark.it/helium-one-edges-closer-to-commerciality-according-to-investment-bank.md","json_url":"https://stockmark.it/helium-one-edges-closer-to-commerciality-according-to-investment-bank.json","category":"Oil and Gas","categories":["Oil and Gas"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/Screenshot_2024-08-27_at_113421.jpg?fit=1200%2C585&quality=89&ssl=1","format":"news","language":"en-GB","content":"Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) is inching closer to achieving ‘commerciality’ as per an investment bank’s assessment, following the company’s latest well test results and a strategic acquisition that is expected to accelerate its journey towards generating revenue.\n\nIn a recent note, Panmure Liberum praised Helium One’s $6.75 million acquisition of a 50% working interest in the Galactica Pegasus Helium Project located in Colorado. The investment bank believes this project could commence production by mid-2025.\n\nThe acquisition provides Helium One with access to a near-term development opportunity that has the potential to generate maiden revenues in 2025. Moreover, this move diversifies the company’s portfolio beyond Tanzania, effectively de-risking its overall asset base and reducing its reliance on Tanzanian assets.\n\nPanmure Liberum also described the production from the Itumbala-1 well in Tanzania as “very encouraging”. The well flowed at an average rate of 786 barrels per day from the Karoo interval, with a helium content of 5%.\n\nMaintaining its ‘buy’ recommendation, the investment bank announced a rebase of its price target for Helium One from 5.30p to 3.44p. This adjustment accounts for the Colorado acquisition and the issuance of new shares in a £6.4 million fundraising initiative that supports the deal.\n\nDespite the revised valuation, Panmure Liberum’s price target still represents more than double the current share price of 1.46p, which saw a 16% decline on the day of the announcement."}