REG - Helium One Global Ld - Tai-3 well results

Helium One GlobalAnnouncement

20/11/2023 07:00

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RNS Number : 9059T  Helium One Global Ltd  20 November 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.

 

20 November 2023

 

 

Helium One Global Ltd

("Helium One" or "the Company")

 

Tai-3 well results

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is
pleased to announce that the Company has successfully completed wireline
logging and downhole sampling at the Tai-3 well.

 

Highlights:

·    Downhole fluid samples successfully recovered from reservoir intervals
in the Upper and Lower Karoo Group confirm the presence of helium

·    Complete wireline logs and initial petrophysical analyses demonstrate
good quality reservoir sands in the Upper and Lower Karoo Group, interbedded
with well developed shale prone seals; data recovered demonstrates a
stratigraphic section, previously undrilled in the Rukwa Rift Basin

·    Onsite pressure-volume-temperature analysis of downhole fluid samples
have yielded helium concentrations up to 8,320 parts per million ("ppm")
helium, which measure significantly above normal background levels of
approximately 5ppm

·    No Basement downhole samples were obtained as the wireline tools could
not be run past 1,430m measured depth ("MD") due to washouts and ledges

·    Tai-3 well has now been suspended for future operations that will
involve drilling deeper into the Basement target, where an increase in helium
shows were encountered whilst drilling

·    Information and data obtained from the Tai-3 well results have
provided a much greater understanding of the active working helium system in
the region and a new well location on the Itumbula prospect has been
identified as a result of these findings

·    On completion of rigging down at Tai-3, the Company's drilling rig
will be moved to the new Itumbula location where the iron rough neck and
hydraulics will be repaired

·    Upon completion of the repair and maintenance work, the Company plans
to continue the drilling campaign

 

 

Tai-3 well

The Company has now successfully completed drilling and wireline operations at
the Tai-3 well, despite a number of unexpected operating challenges,. These
wireline operations have included logging, and downhole pressure tests and
sampling.  The Company was able to successfully run logging tools down to
1,430m MD (compared to the current TD of 1,448m MD) and acquired downhole
fluid samples from four different zones in the Lower and Upper Karoo Group.
Petrophysical analysis of the downhole logs demonstrated little to no zones of
interest for sampling in the Lake Beds or Nsungwe Formation.

The wireline logs have demonstrated a series of good quality, stacked
reservoir intervals in both the Upper and Lower Karoo Group sections. In
particular, the deeper Lower Karoo Group section which had not previously been
drilled in the Rukwa Rift Basin and initial petrophysical analysis has
demonstrated a series of well-developed good quality reservoir sands.  These
sands range from 2-20m thick, an average 17% porosity and 0.44 net to gross,
interbedded with shale prone seals. These reservoir-seal pairs, combined with
their proximity to the Basement helium source, makes this interval a very
interesting primary zone.

The Upper Karoo Group section demonstrates an increased shale content, and
more thinly bedded reservoir intervals. The Lake Bed Formation is dominated by
sandstones and shales, with minor amounts of limestone. Initial petrophysical
analysis of wireline logs over the Lake Bed Formation demonstrates good to
excellent quality reservoir sands (average 24% porosity and 0.61 net to gross)
interbedded with thin claystones and limestones.

The downhole sampling programme, using a Baker Hughes Reservoir
Characterisation Instrument, successfully recovered samples from four
different intervals in the Lower and Upper Karoo Group. Although, no free gas
samples were obtained, there was evidence of helium gas in solution when the
samples were transferred at surface, and pressure-volume-temperature analyses
were performed. These samples yielded helium up to 8,320ppm helium, with the
highest values encountered close to a small, faulted zone in the Lower Karoo
Group. It is noted that helium shows increased whilst drilling into the
Basement fracture zone until losses were encountered and drilling operations
were halted.

The presence of these helium-enriched fluids migrating through the basin along
fractures and fault zones that is likely to allow the helium to migrate from
the deeper Basement source rock. As a result of this increased understanding
of the regional characteristic, the Company plans to drill deeper into the
Basement with a view that this trend continues, and helium concentrations
continue to increase at greater depths. On this basis, the decision has been
made to run 7" casing and suspend the Tai-3 well, so Helium One can return at
a later date and deepen the well.

 

Itumbula prospect

The Company is also in the process of reviewing the geology of the Itumbula
prospect, in light of information gleaned from Tai-3. The Itumbula prospect is
bound by one of the largest faults in the basin, and this is associated with a
prolific surface helium seep which has measured up to 10.4% helium. The
results from the Tai-1 and Tai-3 wells seem to indicate that it is the faults
and Basement fractures that are releasing the highest concentrations of helium
and, therefore, the Company now intends to target the western bounding fault
of the Itumbula prospect during the second phase of this drilling campaign.

The Company is still finalising the details of the repair work that is
required for the rig and will provide updates as soon as that information is
available; as well as plans for the revised well location once concluded.

 

Lorna Blaisse, Chief Executive Officer, commented:

"These results are very encouraging indeed and we are delighted to have
completed the Tai-3 well safely and to have been able to acquire a full set of
wireline logs and downhole samples.  This is an excellent result for the
Company and a huge testament to the team's performance, especially given the
challenges we have faced along the way.

Whilst disappointing that we were unable to run the wireline tools further
into the Basement target at this time, given the increased helium shows we saw
at this depth, we are confident that by casing the well and suspending Tai-3,
we will be able to return at a later date and target the fractured Basement
helium play which we believe to have significant potential.

We have continued to demonstrate that there is an established working helium
system in the Rukwa Basin and the Tai-3 well has given us a fundamental set of
geological learnings, which we now intend to apply to the Itumbula prospect.

Once Tai-3 has been rigged down we will move the rig to Itumbula where our
primary focus will be on repairing the Predator 220 rig and, armed with
valuable information and data gained from Tai 3, moving onto our second well
of this drilling campaign on Itumbula."

 

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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