REG - Helium One Global Ld - Itumbula West-1 well flows helium(4.7%) to surface

Helium One GlobalAnnouncement

05/02/2024 07:00

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RNS Number : 9445B  Helium One Global Ltd  05 February 2024

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 February 2024

 

 

Helium One Global Ltd

("Helium One" or "the Company")

 

Itumbula West-1 well flows helium (4.7%) to surface

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is
pleased to provide the following update on the completion of the Itumbula
West-1 well which saw helium flow to surface.

 

Highlights

·    Itumbula West-1 well has successfully completed all wireline logging
and drill stem testing ("DST") operations

·    The well successfully flowed a high concentration of helium to
surface from Basement, at a measured concentration up to 4.7% helium

·    A measured helium concentration of 4.7% equates to almost nine
thousand times above background levels

·    Hydrogen also flowed to surface during basement testing, at a
concentration of 2.2% hydrogen, over thirty-seven thousand times above
background levels

·    Wireline logs, including image logs, demonstrated the location of
fault and fracture zones and these were used to locate optimal well test
intervals

·    Downhole fluid samples have been obtained from three separate well
test intervals, in the Basement and across the fault zones, all were analysed
at surface in an onsite pressure-volume-temperature ("PVT") laboratory and
indicated the presence of elevated helium

·    Duplicate samples collected from all three well test intervals will
be sent to a second laboratory for analysis

·    Hot Basement fluids, measuring >80°C, encountered across the
fault zone and in the Basement and are consistent with helium and hydrogen
prone intervals

·    Elevated temperatures consistent with a low enthalpy geothermal
system

·    The well is now being cased and suspended and the Company will fully
evaluate the well results and focus on advancing this project in the most
effective way possible

·    Non-productive time ("NPT") for the Epiroc Predator 220 drilling rig
reduced by over 350% between Tai-3 and Itumbula West-1

·    Zero Lost Time Injuries ("LTI") across the two well drilling
programme of Tai-3 and Itumbula West-1

 

 

 

Lorna Blaisse, Chief Executive Officer, commented:

 

"We are delighted with the findings from Itumbula West-1 and the results from
the down hole well testing have clearly confirmed the presence of a producing
helium province in the Rukwa Rift Basin. The learnings from the Tai-3 well
provided invaluable additional subsurface information and how the helium
system works. By applying these findings, we adjusted our well location at
Itumbula, and this has certainly yielded the results we were hoping for and
justified that decision.

 

Flowing helium to surface in such high concentrations is a huge milestone for
the Company and we will now fully evaluate these results and focus on
advancing this project in the most effective way possible; one that will aim
to achieve commerciality at the earliest opportunity.

 

This drilling campaign has been a huge success for both the Company and for
Tanzania. I would like to thank all of those involved in bringing the project
to this point of success - especially to our in-country teams and for the
continued support from the Ministry of Minerals and the Mining Commission of
Tanzania, as well as the local communities where we operate.

We look forward to providing further updates as we fully evaluate the results
and outline how we are planning the next steps to advance the project."

 

Details

The successful results of the wireline logging, combined with the acquisition
of image logs, confirmed the presence and location of the fault zones and
fractured Basement that were originally identified through the evaluation of
the 2D seismic. Helium shows obtained from the drilling mud whilst drilling
had already indicated that these zones were likely to be helium-bearing
intervals, and the wireline data enabled the well test intervals to be
identified.

The Company identified three zones for well testing, and upon completion of
each DST, all three zones successfully yielded downhole gas samples. When
performing the Basement DST, high concentrations of helium began to flow to
surface following reverse circulation and yielded a compositional mix up to
4.7% helium, 1.5% argon, 8% oxygen and 86% nitrogen. These results were
evaluated using an onsite Mass Spectrometer and verified from downhole samples
by a field PVT laboratory at the well site. A measured helium concentration of
4.7% equates to almost nine thousand times above background levels (5.3ppm).

Two subsequent well tests were carried out across the fault zone and yielded
similar results from the downhole samples which were evaluated in the onsite
field PVT laboratory. The Company has identified that the frequency of helium
increases with depth and is preferentially carried in hot fluids out of the
Basement and along fault conduits. As the helium rises through the well bore,
the pressure decreases, and it is thought that the helium then comes out of
solution and increases in concentration.

This was further collaborated with mudlogging data that showed elevated helium
whilst drilling the 8½" hole section through the Lake Beds Formation and the
shallow fault zone. The well produced a continuous measurement of helium gas
across the micro-GC and this consistent helium gas measurement was repeated
during hole opening operations in preparation for running casing.

Despite having an accurate, independent field PVT laboratory on site, the
Company has collected duplicate samples where possible, and these will be sent
to a second laboratory for independent verification.

In addition to high helium flowing to surface, the Company encountered
elevated hydrogen levels that flowed to surface. This concentration of
hydrogen was measured at 2.2% using micro-GC equipment and is over
thirty-seven thousand times above background levels (0.6ppm).

During the DST, it was noted that the downhole temperature gauges detected
elevated temperatures (>80°C) associated with the release of hot Basement
fluids, and subsequently, helium. These temperatures are indicative of a low
enthalpy geothermal well. This geothermal energy has the potential to result
in either a direct use project or a binary fluid electricity producing plant.
 Which in turn could be utilised in a number of ways which may include
powering several functions in the development and production phase.

The Company owned Predator 220 drilling rig completed the drilling of the
Itumbula West-1 well in eighteen days to a total depth of 961m measured depth
and has successfully run wireline operations and completed three DSTs. NPT for
the Epiroc Predator 220 drilling rig was reduced by over 350% between the
Tai-3 and Itumbula West-1 wells, with zero downtime related to hydraulic
issues. This improvement reflects and justifies the comprehensive upgrade and
maintenance programme carried out post Tai-3.

In addition, the Company has successfully to date, completed the two well
drilling campaign safely without any LTI.

 

 

 

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.

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 2023/24 drilling campaign, which has identified 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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