Helium One Global – now crewed up, almost rigged up and getting very close to the spud of Tai-C within the next few weeks
Based in Dar es Salaam, Tanzania, the Helium One Global (LON:HE1) group engages in the exploration and production of helium gas.
Its project portfolio includes the Rukwa project consisting of 15 prospecting licenses covering an area of approximately 3,590 square kilometres located in southwestern Tanzania.
The group, which has the potential to become a strategic player in resolving a supply-constrained helium market, has this morning issued an Operational Update on its progress at its Rukwa (100% Operated) project area ahead of its Phase II drilling programme.
The company now has a fully appointed experienced drill crew, with its rig now on the Tai-C wellsite and approximately 90% ‘rigged up’, while the camp mobilisation and preparation is now in process.
The project is now awaiting the remaining long-lead items for delivery, which are currently on schedule within next two weeks, with the company said to be well on track for spud of Tai-C in the second half of September.
CEO Lorna Blaisse stated that:
"We are delighted with the continued progress that we have achieved in the lead up to spud.
We now have an experienced crew in place to carry out our 24-hour drilling programme, the rig is almost completely rigged up at site and the last few long lead items will arrive shortly.
We also recognise the contribution made by Zenith in assembling an experienced, first-class crew to drill this well.
This is an incredibly exciting time for the Company as we approach the spud of Tai-C in the second half of September.
The team has worked very hard to get us to this point and we look forward to the last few items required to fall into place."
Within the rift basins of on the Tanzanian Craton, apart from Rukwa, the group also has the Eyasi project, which include four prospecting licenses covering an area of about 910 sq km located in north central Tanzania; and the Balangida project comprises one prospecting license covering an area of some 260 sq km located in north central Tanzania.
The assets lie near surface seeps with helium concentrations ranging up to 10.6% He by volume.
All Helium One's licences are held on a 100% equity basis and are in close proximity to the required infrastructure.
The £71m capitalised company, which was founded in 2015, serves the medical, technology, and aerospace sectors.
Analyst Sam Wahab at Liberum Capital rates the groups shares as a Buy with a 20p Target Price.
He has noted that the company has conducted extensive work and completed additional analysis since the Phase I programme, including 220km of additional 2D seismic above its Tai prospect.
Correlating data has allowed for mapping of the subsurface structures to identify faulting, and thereby identify migration pathways, closures and potential gas accumulations.
QEMSCAN analysis on cuttings from Phase I have also provided information on reservoir distribution, mineralogy, seal potential and indicates a good-to-excellent quality reservoir and a thick claystone unit at the top of the Karoo Group.
He concludes that from this work, Tai remains HE1’s most compelling, and lowest risk, priority.
The company’s shares this morning are trading 5% higher at 7.30p.