At some point, almost every license holder starts thinking of floating their company. More often than not, an IPO at a local stock exchange – in Australia, that would be the ASX – comes to their mind.
When this important decision is made, the company inevitably enters the sequence of standard procedures. This process was set up long time ago and pretty much written in stone.
One of the trickiest stages in this process is known under the name of Resources Assessment. In a nutshell, it’s about disclosing the natural resource/commodity reserves within the license acreage (and beneath) to the potential investors, a.k.a. stock buyers.
And – yes! – the full disclosure is an imperative, remember?
In order to get their resource/s properly assessed, a license holder starts liaising with a (highly) reputable advisory firm specialized in natural resources and similar commodities. This advisory firm, in turn, have their assessment and evaluation procedures standardized – otherwise, it would be quite difficult to compare “apples to apples” when the great variety of say petroleum assets hit the market on a monthly if not weekly basis, globally. As for the natural hydrogen resource assessment algorithms, these advisory firms are most likely to be using those developed for natural gas – with Gas in Place (GiP) presiding over all other parameters, expressed in Billion cubic feet – Bcf.
Now, when it comes to natural hydrogen, it looks quite troublesome – and worrisome – to think of its reserves in these terms because of this gas’s extreme mobility/volatility and reluctance to form “deposits”. (As an example, tectonic type of traps are unthoughtful of for natural hydrogen because the latter will immediately escape from such trap). As a result of these criterion application to the natural hydrogen reserves, an IPO as well as fund raising may turn into a large disappointment – and some of the recent attempts demonstrated this in a perfect but sad light.
We are prepared to work with all stakeholders – licensees, investors, advisory firms and brokers – to jointly develop reliable and transparent criterion for natural hydrogen commercial reserves assessment.