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Helium One GlobalAnnouncement

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RNS Number : 3355O  Helium One Global Ltd  25 June 2025

 

 

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.

 

25 June 2025

Helium One Global Ltd

("Helium One" or "the Company")

 

Independent CPR and Company Feasibility Study of the Southern

Rukwa Helium Project in Tanzania

 

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania with a
50% working interest in the Galactica-Pegasus helium development project
in Colorado, USA ("the Galactica Project"), provides an update following an
independent competent person's report ("CPR") on the contingent and
prospective resources at southern Rukwa Helium Project, Tanzania. The
evaluation of helium resources and the subsequent completion of the CPR has
been carried out and issued by leading international reserves auditors Sproule
ERCE.

The evaluation of these helium resources in the southern Rukwa Helium Project
are solely within the recently accepted 480km(2) Mining Licence ("ML") area
(see fig.1). These resources are also broadly in line with those of the
internal Company estimates which went into the Feasibility Study ("FS") and
which formed the basis of the ML application for the southern Rukwa Helium
Project in September 2024.

Highlights

·    Deterministic sum of 2C Gross Helium Contingent Resources(1) for the
Itumbula development have been evaluated by Sproule ERCE as 295,797 thousand
standard cubic feet ("Mscf") and a 3C case of 1,345,591 Mscf Gross Helium
Contingent Resources(1)

·    Additional Prospective Resources(2) within the remainder of the
Mining Licence ("ML") area, excluding resources assigned to the Itumbula
discovery, have been evaluated by Sproule ERCE as 709,239 Mscf (2U) and
3,227,556 Mscf (3U) (Unrisked)

·    Contingent Resources(1) have been assessed by developing type curves
and a well schedule for an Early Production System ("EPS"), followed by a
further development with a Central Processing Facility ("CPF")

·    Sproule ERCE have assigned Contingent Resources(1), sub-classified as
'Development on Hold' to the EPS for the first period of the ML. Further
production beyond this point is assigned to the sub-class 'Development
Unclarified', as a standard license extension will be required at the end of
the initial 10-year term

·    Based on a phased development; initially with a 5-well and an EPS,
which will serve to further appraise the area with a 15-well programme
followed by a further phased 46 wells for the full field development

 

James Smith, Non-Executive Chairman of Helium One, commented:

"The completion of this Independent CPR further endorses what we have always
believed, and that our project at Southern Rukwa has the potential to be a
unique and strategic helium development in Africa.

We now look forward to finalising the execution of the Mining Licence and
working with the Government of Tanzania, as well as the communities where we
operate, to successfully deliver this project."

 

Lorna Blaisse, CEO of Helium One, commented:

"We are delighted that the results of the CPR endorse the work that the team
have carried out following successful drilling at ITW-1 and the subsequent
extended well test last year, whilst also providing further confidence that we
have a unique, unconventional helium play through a resource with capacity to
make a material difference in a supply constrained market.

This is the first helium contingent resources CPR in Tanzania covering a
definitive licence area, and which can now be developed pursuant to the mining
legislation under the Ministry of Minerals. This allows us to assign a greater
proportion of Contingent Resources to the project, and therefore a greater
degree of certainty on the quality of the resource.

The results of this CPR, combined with the vast amount of work required in
order to complete and present the Company's Feasibility Study, demonstrate
alignment in our modelling and evaluation of the play, and we are on track to
advance the project towards development with confidence."

 

CPR Details

Sproule ERCE have determined that, unlike conventional gas discoveries, the
helium in the southern Rukwa Project is accumulated, transported and stored in
water aquifers and as such, no specific trap is defined. It is possible that
gas-water ratio and helium concentrations will change with water production
over time. However, it is hard to estimate if and how this will occur at
present.

 

The Society of Petroleum Engineers ("SPE") has recently acknowledged the
application of the PRMS principles for the assessment of helium resources
(https://www.spe.org/en/industry/reserves/non-hydrocarbons/
(https://www.spe.org/en/industry/reserves/non-hydrocarbons/) ). Accordingly,
Sproule ERCE has applied these principles to the estimation of total gas and
helium Contingent and Prospective Resources.

 

 

Contingent Resources

 

Sproule ERCE has assessed Contingent Resources(1) by developing type curves
and a well schedule for the EPS and the later development, the CPF. Sproule
ERCE has assigned Contingent Resources(1), sub-class Development on Hold to
the EPS for the first period of the mining licence (ten years). Further
production beyond this period is assigned to the sub-class Development
Unclarified (see PRMS figure above), as a licence extension will be required
to continue, on the same terms.

 

Sproule ERCE has assigned Contingent Resources(1), sub-class Development on
Hold to the EPS for production within the ten-year mining licence period.
Sproule ERCE has attributed Contingent Resources(1), sub class Development
Unclarified, to the CPF for the first mining licence period, as well as to
production from the EPS and CPF after the initial ten-year period of the
licence, upon grant of the relevant licence extensions.

 

Fig.1 Map illustrating the red ML outline (ML 0795/2025) of 480km(2) in the
southern Rukwa Helium Project, with wells drilled and associated helium
measurements.

 

Sproule ERCE has generated type curves for a typical well by first determining
water production forecasts. The average liquid rates from these are then
probabilistically multiplied by the GWR and He% ranges to determine
P90-P50-P10 ranges for a type well. Sproule ERCE then uses this type well to
generate a multi-well development production profile. The resultant profile is
then constrained to the facility's capacity.

 

Prospective Resources

 

In addition to the Contingent Resources(1), Sproule ERCE have also calculated
Prospective Resources(2) of helium within the awarded ML area not covered by
and included in the Itumbula discovery. These estimated volumes are
potentially recoverable from a future development.

 

Sproule ERCE has assigned Prospective Resources(2) to the mapped basement
fault areas that are not currently targeted by the EPS or the CPF development.
Prospective Resources(2) are estimated in a similar method to Contingent
Resources(1), using Sproule ERCE's type well by determining water production
forecasts and assigning further drilling in the prospective areas. Well
spacing has been derived using Helium One's reservoir simulator as an average
spacing, avoiding well interference in the model.

 

Sproule ERCE has evaluated the geological chance of success ("COS") of the
Prospective Resources(2) and assigns a COS of 50%. The relevant risking
parameters for Helium resources are source (generation and migration) and
reservoir (presence and efficacy), with reservoir efficacy being the greatest
risk.

 

Proposed Development Plan

 

Sproule ERCE has reviewed the proposed development plans for Itumbula West.
Helium One has provided development plans for a full-scale development of the
concession, and for an EPS. In this development plan, wells are located
proximal to the Basement faults as mapped, as Helium One prognose an increase
in reservoir quality within the Basement rock close to these faults, within
the fault damage zone.

 

The EPS is conceptually similar to the full development, but with lower
initial capital investment. Production wells will be tied back to a central
early production facility, where produced fluids will be processed into sales
helium for export, and wastewater for disposal, with waste gases vented on
site. The EPS is assumed to operate for six months before the full development
project is commenced.

 

Feasibility Study

 

This CPR supports the Company's understanding of the project and utilises the
same dataset from the helium discovery at ITW-1 well last year, integrating
the extended well test ("EWT") data which was used to produce a detailed
dynamic volumetric model. Outputs from this model were used to define the
Company's internal resource estimates and formed the primary input to the
detailed FS as per the ML application in September 2024.

The Company will be in a position to release details of the FS upon formal
award of the ML and execution of all associated agreements.

 

Definitions

(1)Contingent Resources are those quantities of gas estimated, as of a given
date, to be potentially recoverable from known accumulations, but the applied
project(s) are not yet considered mature enough for commercial development due
to one or more contingencies. Contingent Resources may include, for example,
projects for which there are currently no viable markets, or where commercial
recovery is dependent on technology under development, or where evaluation of
the accumulation is insufficient to clearly assess commerciality. Contingent
Resources are further categorised in accordance with the level of certainty
associated with the estimates as 1C, 2C and 3C.

 

(2)Prospective Resources are those quantities of gas estimated, as of a given
date, to be potentially recoverable from undiscovered accumulations by
application of future development projects. Prospective Resources have both an
associated chance of geologic discovery and a chance of development.
Prospective Resources are further categorized in accordance with the range of
uncertainty associated with recoverable estimates, assuming discovery and
development. For Prospective Resources the estimates are categorised as 1U, 2U
and 3U. Prospective Resources may be sub-classified as Prospects, Leads and
Plays. A Prospect is a potential accumulation that is sufficiently well
defined to represent a viable drilling target. A Lead is a potential
accumulation that is currently poorly defined and requires more data
acquisition and/or evaluation in order to be classified as a prospect. A Play
is a prospective trend of potential prospects, but which requires more data
acquisition and/or evaluation in order to define specific leads or prospects.

 

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

 Graham Jacobs, Finance and Commercial Director

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

 Scott Mathieson

 Nikhil Varghese

 Zeus Capital Limited (Joint Broker)                           +44 20 3829 5000

 Simon Johnson

 Louisa Waddell

 Tavistock (Financial PR)                                      +44 20 7920 3150

 Nick Elwes

 Tara Vivian-Neal

 

Sproule ERCE has independently assessed the helium Contingent and Prospective
Resources, plus Geological Chance of Success (COS), for the Itumbula West
discovery and surrounding areas. The SPE has recently acknowledged the
application of the PRMS principles for the assessment of helium resources
(https://www.spe.org/en/industry/reserves/non-hydrocarbons/). Accordingly,
Sproule ERCE has applied these principles to the estimation of total gas and
helium Contingent and Prospective Resources.

Lorna Blaisse, CEO of Helium One, who has an MSci in Petroleum Geoscience
(First Class Hons) and is a Fellow of the Geological Society of London and a
member of the Geoscience Energy Society of Great Britain (GESGB), has reviewed
the information contained in this release.

 

 

 

 

Notes to Editors

Helium One Global, the primary helium explorer in Tanzania with a 50% working
interest in the Galactica-Pegasus helium development project in Colorado, USA.
The Company holds helium licenses within two distinct helium project areas,
across two continents. With an expanding global footprint, the company has the
potential to become a strategic player in resolving a supply-constrained
helium market.

The Company's flagship southern Rukwa Project is located within the southern
Rukwa Rift Basin in south-west Tanzania.  This project entering a full
appraisal and development stage following the success of the 2023/24
exploration drilling campaign, which proved a helium discovery at Itumbula
West-1 and, following an extended well test ("EWT"), successfully flowed 5.5%
helium continually to surface in Q3 2024.

Following the success of the EWT, the Company filed a Mining Licence ("ML")
application with the Tanzania Mining Commission in September 2024. The
480km(2) ML has now been offered to the Company and was officially accepted in
March 2025.

The Company also owns a 50% working interest in the Galactica-Pegasus helium
development project in Las Animas County, Colorado, USA. This project is
operated by Blue Star Helium Ltd (ASX: BNL) and has successfully completed a
six well development drilling campaign in H1 2025. The completion of the
development programme is a key component of the broader Galactica-Pegasus
development strategy; aimed at progressing the helium and CO(2) discoveries to
near-term commercial production.

This programme has seen a systematic approach to developing the extensive
Lyons Formation reservoir. The programme has delivered encouraging results, in
line with expectations, consistently encountering good helium (up to 3.3% He)
and CO(2) concentrations in the target formation and demonstrating promising
flow potential. The next steps will see the Galactica wells tied into initial
production in Q4 2025.

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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