TIDMHE1
RNS Number : 6427V
Helium One Global Ltd
05 December 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 as amended by The
Market Abuse (Amendment) (EU Exit) Regulations 2019.
05 December 2023
Helium One Global Ltd
("Helium One" or "the Company")
Company update
Helium One Global (AIM: HE1), the primary helium explorer in
Tanzania, is pleased to provide the following operational and
financing updates.
Highlights
-- Replacement iron rough neck for the Epiroc Predator 220
drilling rig purchased and currently being mobilised from the USA;
installation expected to be completed within three weeks
-- Hydraulic and electrical maintenance and repairs currently nearing completion
-- Civils work at the revised Itumbula well pad (West-A) now
complete and rig successfully rigged down from Tai-3 and moved to
Itumbula
-- Spud of Itumbula well now anticipated to be early January
2024; targeting a large, deep seated basement fault and additional
play concept
-- Site personnel reduced to minimise costs during rig maintenance and repair period
-- A cost analysis and budgeting exercise in relation to
Itumbula well indicates a need for further funding and the Company
is in positive and advancing discussions with a number of
investors
Rig Maintenance and Drilling Operations
The Company has now successfully purchased and mobilised a
replacement iron rough neck from the USA. This new item will
replace the existing iron rough neck component on the Company's
Epiroc Predator 220 drilling rig and is expected to arrive on site,
at the Itumbula well location, and to be installed within the next
three weeks.
Over the past two weeks, a specialist Hydraulics Engineer has
been reviewing the hydraulic system of the drilling rig and the
Company is confident that these issues have now been rectified.
Following rig down at Tai-3, the rig itself and all associated
equipment (including the substructure and the pipe skate), have now
been successfully moved to the Itumbula lay down area, located
approximately 1.2km from the Itumbula well pad. It is at this
location that the remainder of the rig maintenance and repair work
will be completed and the rig will then be moved the short distance
to the new Itumbula well pad.
Itumbula prospect: revised well location and drilling
programme
Following the positive drilling results from the Tai-3 well, and
the increase in concentration of helium encountered in the fault
and fractures close to Basement, the Company has subsequently
reviewed the geology of the Itumbula prospect. It is bounded by a
large, deep seated western fault which extends into the Basement
source rock. It is this fault that is interpreted to be associated
with the active surface helium seep 3km away.
With the results from Tai-1/-1A and Tai-3 suggesting that it is
the migration of fluids that play a crucial role in liberating the
helium out of the Basement source and along fractures and faults,
the Company has now elected to target the western bounding fault at
Itumbula as a primary target. Therefore, the Itumbula well has been
designed to directly target this new fault play where the Company
anticipates helium concentrations to be significantly elevated.
The Company now expects to spud the Itumbula well in early
January 2024; we anticipate the drilling programme to be completed
within 30 days.
Funding update
Having successfully moved the rig to Itumbula and, following the
identification of the new Itumbula well, completed the new well pad
civils work in readiness for drilling, the Company has undertaken a
full cost analysis and budgeting exercise in order to ensure that,
once spudded, the Itumbula well can be successfully drilled as
planned. In undertaking this costing exercise the Company has been
cognisant of the contingency funding that may be required given the
significant additional costs and time delays encountered during the
drilling of Tai-3.
Having completed the costing exercise, the Company has
identified a need for additional funds before Itumbula can be
drilled. In addition, the Company is in receipt of a number of
unsolicited approaches from potential investors and, in light of
the findings of the costing exercise, is advancing these
discussions while also assessing other financing options. The
Company is confident of securing the additional funding in the near
future so as to realise the cost synergies of avoiding a delay to
the drilling of Itumbula and will provide an update in due
course.
Lorna Blaisse, Chief Executive Officer, said:
"The team has worked exceptionally hard to find a resolution to
the rig maintenance issues and we are delighted to now be well on
the way to completing this, having sourced and mobilised the
replacement parts to site so quickly. The rig upgrade and repairs
will provide us with a better platform for future drilling
activities.
The well results from Tai-3 have enabled us to better understand
the established helium system in the Rukwa Basin and we look
forward to being able to utilise these findings and drill the fault
play at Itumbula as soon as possible.
The Company is advancing discussions with potential investors
while also assessing other financing options and is confident of
securing additional funding in the near future. "
For further information please visit the Company's website:
www.helium-one.com
Contact
Helium One Global Ltd +44 20 7920
Lorna Blaisse, CEO 3150
Liberum Capital Limited (Nominated Adviser
and Joint Broker)
Scott Mathieson
Ed Thomas +44 20 3100
Nikhil Varghese 2000
Peterhouse Capital Limited (Joint Broker) +44 20 7220
Lucy Williams 9792
Tavistock (Financial PR)
Nick Elwes +44 20 7920
Tara Vivian - Neal 3150
Notes to Editors
Helium One Global, the AIM-listed Tanzanian explorer, holds
prospecting licences totalling more than 2,965km(2) across three
distinct project areas, with the potential to become a strategic
player in resolving a supply-constrained helium market.
The Rukwa, Balangida, and Eyasi projects are located within rift
basins on the margin of the Tanzanian Craton in the north and
southwest of the country. 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 Company's flagship Rukwa Project is located within the Rukwa
Rift Basin covering 1,900km(2) in south-west Tanzania. The project
is considered to be an advanced exploration project with leads and
prospects defined by a subsurface database including multispectral
satellite spectroscopy, airborne gravity gradiometry, 2D seismic
data, and QEMSCAN analysis. The Rukwa Project has been de-risked by
the 2021 drilling campaign, which identified reservoir and seal
with multiple prospective intervals from basin to near surface
within a working helium system.
Helium One is listed on the AIM market of the London Stock
Exchange with the ticker of HE1 and on the OTCQB in the United
States with the ticker HLOGF.
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END
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