Helium One Global Ld - Operational Update

Helium One Global

10/07/2023 07:00

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RNS Number : 4555F  Helium One Global Ltd  10 July 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.

 

10 July 2023

Helium One Global Ltd

("Helium One" or "the Company")

 

Operational Update

Drilling of Tai Prospect in Rukwa Basin, Tanzania on track for 3Q 2023
following the

acquisition of Epiroc Predator 220 drilling rig and completed mobilisation to
Tanzania

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is
pleased to provide an update on progress at its Rukwa (100% Operated) project
area including details of its Phase II drilling programme.

 

Highlights

·    Successful acquisition of an Epiroc Predator 220 drilling rig

·    Rig is suitable for operations and was signed off independently by
international rig inspection and audit company ADC Energy Ltd ("ADC") in July
2022

·    Rig is currently being mobilised to the Rukwa site

·    Rig will be used to drill the Tai-C well in Q3 2023 with a target
September spud date

·    Rig ownership provides a platform that will enable the Company to
move quickly into an appraisal phase upon success at Tai-C, and allow
accelerated exploration on the Rukwa, Eyasi and Balangida projects

·    Civils work on Tai-C well pad and access roads already underway

·    Contract executed with leading energy technology company, Baker
Hughes, for their services on wireline, cementing and fluids

·    GeoLog International BV ("GeoLog") contracted for mudlogging services

 

Successful acquisition of drilling rig and mobilisation to wellsite in
progress

Following the extensive evaluation of rig options and in order to remain on
the critical path to a Q3 spud, the Company has successfully completed the
acquisition of an Epiroc Predator 220 drilling rig - an oil and gas type rig
capable of drilling to depths in excess of 2,000m. The rig is now in Tanzania
and is currently being mobilised to the Rukwa site. This is a highly
significant achievement for the Company as ownership of the rig provides the
opportunity to move quickly into further exploration drilling and, in a
success case, allow the appraisal of Tai without the additional cost of
keeping a rig on standby or become challenged by mobilising a rig into country
again.

 

The Company has an inspection report of the rig from 2022 which confirms that
the rig is in good condition and a more recent inspection by the Company,
prior to acquisition, has confirmed it remains in working order. The Company
will now focus on securing an experienced crew ahead of drilling operations.

Long lead items such as drill bits, bottom hole assemblies, casing and drill
pipe that the Company had already purchased for the Drillmec HH102 rig are
compatible with the Epiroc Predator 220 rig, and this will keep additional
cost spend to a minimum. Some of this equipment has already been mobilised to
site in anticipation of the forthcoming operations.

The Company has now terminated its association with SOFORI after having
previously served a notice of rectification.

 

Rukwa civils work underway and third-party drilling services executed

The Company has already commenced the ground works for the construction of the
Tai-C well pad, camp and access roads at its Rukwa site. The civils work is
being carried out by TNR Ltd ("TNR"), a Tanzanian company, and is expected to
be completed by mid-August 2023.

The Company has also executed a contract with leading energy technology
company, Baker Hughes, who will provide wireline services as well as cementing
and drilling chemicals and fluids for the Tai-C well.

GeoLog International BV ("GeoLog") have been contracted for their mudlogging
services. GeoLog were contracted on the Tai-1/-1A well and did an excellent
job in terms of gas monitoring and surface logging, and the Company is pleased
to be using them again on Tai-C.

 

Updated timeline of Operations

Having now secured a rig in Tanzania, the Company is focused on ensuring the
rig is ready to commence drilling Operations in September. Once the civils
work is complete, the rig will be mobilised to the Tai-C wellsite. In the
meantime, the Company will order remaining well control equipment, await the
arrival of drill pipe and source an experienced crew. The Company has already
mobilised drill bits, wellheads and casing to site at Rukwa.

 

Ian Stalker, Chairman, commented:

"I am pleased to note the above significant progress made with our efforts to
ensure we drill our exciting Tai Prospect in Rukwa with a recently upgraded
P50 Helium resource of 2.8 Bcf. This is indeed a milestone event for the
Company and opens up a range of ancillary options for the Company as well as,
most importantly, securing the control of our own drilling programme and any
future appraisal and further exploration activities."

"This is an event I am pleased to share with our supportive and resilient
shareholders. This rig acquisition is a strategic move in ensuring fast track
appraisal and development in a success case at Tai. The rig has been mobilised
from the East Africa region and, when compared to mobilising rigs in from
elsewhere, the cost differential is significant- in simple terms more cost
effective and time efficient."

"Mobilising the rig and component parts to Tanzania in such short order is a
very significant achievement and a testament to the team.  Our CEO and the
entire team from top to bottom have taken the decisive action necessary and
worked tirelessly to ensure we can still fulfil our Q3 drilling programme as
we had previously outlined.  We are looking forward to an exciting Q3,
getting the rig to Rukwa and drilling Tai-C. To say it's exciting for us at
Helium One is truly an understatement -onwards!!"

 

Lorna Blaisse, Chief Executive Officer, commented:

"We are delighted to finally have reached this significant milestone of
securing a rig for our Q3 drilling programme in Rukwa.  This enables us to
execute on what we set out to do and drill the Tai-C well. Having acquired a
rig which is now in country, as well as civils and well pad preparations
underway, we are on track for a Q3 spud date and we can now move forward and
focus on executing a safe and successful drilling programme."

"The next critical path is to mobilise the rig to the Tai-C wellsite, carry
out the relevant checks post mobilisation, source an experienced crew and
purchase the remaining long lead items to enable drilling operations to
commence in September."

"This has been an exceptional effort by all the team to ensure we had an
executable option after recent disappointments and setbacks, in order to still
fulfil our Q3 drilling target. I am very thankful to them for their tireless
efforts over the past few months and I'm confident we have an excellent team
in place to deliver the next phase of the project as well as any appropriate
follow-on campaigns."

"We look forward to providing further updates as appropriate."

 

 

For further information please visit the Company's website: www.helium-one.com
(http://www.helium-one.com)

Contact

 Helium One Global Ltd                                         +44 20 7920 3150

 Lorna Blaisse, CEO

 Liberum Capital Limited (Nominated Adviser and Joint Broker)  +44 20 3100 2000

 Scott Mathieson

 Ed Thomas

 Nikhil Varghese

 Peterhouse Capital Limited (Joint Broker)                     +44 20 7220 9792

 Lucy Williams

 Tavistock (Financial PR)                                      +44 20 7920 3150

 Nick Elwes

 Tara Vivian - Neal

 

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting
licences totalling more than 2,964km(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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