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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
(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 2,965km(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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