Helium One Global Ltd Operational update (4606T)

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RNS Number : 4606T

Helium One Global Ltd

15 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.

15 November 2023

Helium One Global Ltd

("Helium One" or "the Company")

Operational update

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to provide the following update on Tai-3 operations.

Highlights

   --    The Company has now successfully pulled the drill string out of hole at Tai-3 
   --    Wireline operations and initial logging underway 
   --    Downhole sampling to commence once logging is complete, with capability for onsite analysis 

Details

The Company has successfully pulled the drill string out of hole at the Tai-3 well. This was achieved by isolating and repositioning various components of the iron rough neck and, whilst this does not represent a long-term solution to the rig problems, it has enabled the Company to safely retrieve the drill pipe and bottom hole assembly, comprising of the heavy weight drill pipe and drill collars, from the hole.

The hole conditions remain good, and after removal of the drill string, the Company took the opportunity to move directly to wireline operations, as this does not place any reliance on the rig's hydraulics nor the iron rough neck. The logging tools from the initial logging run encountered some washouts and ledges in the Lower Karoo, therefore the tools were only able to reach 1,430m MD and not to TD at 1,448m MD.

Helium One plans to commence a downhole sampling programme shortly, using a Baker Hughes Reservoir Characterisation Instrument that is designed to obtain gas samples from identified zones of interest under reservoir conditions. If the sampling is successful, Helium One have the capability to transfer and evaluate these samples at the wellsite using field pressure-volume-temperature analysis in order to determine the gas composition.

The Company is currently still determining the timelines required for a full rig repair. But the priority at this stage is to complete the wireline logging and acquire downhole samples. The samples will then be evaluated at site so that an informed decision with respect to Helium One's forward operational programme can be made.

The Company will provide further updates on the sampling and the forward operational programme in due course.

Lorna Blaisse, Chief Executive Officer, commented:

"The team at site have done an outstanding job working innovatively and proactively to ensure we were able to safely pull the drill string out of the hole. This surpassed all expectations and we're delighted to now be in the position of having commenced wireline operations and planning downhole sampling to fully evaluate the Tai-3 well.

Whilst the setback with the rig is incredibly frustrating, we have overcome a number of operational hurdles and remain focussed and confident that when the rig is back up and running, we will be in a stronger position for future wells."

James Smith, Non-Executive Chairman, commented:

"This is an incredibly dynamic situation, and whilst we continue to work towards evaluating the repairs required to the Epiroc Predator 220 drilling rig, and the timeline required to deliver these repairs, we are pleased to provide this update to our shareholders.

Since Friday, we have done all we possibly could to move Tai-3 operations forward, and everyone has worked exceptionally hard to get to this point. Once we have obtained and assessed downhole samples and determined the extent and timing of the necessary rig repairs, we will be able to provide an updated forward operational programme."

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

Contact

 
 Helium One Global Ltd                         [phone] 
  Lorna Blaisse, CEO                            3150 
 
 Liberum Capital Limited (Nominated Adviser 
  and Joint Broker) 
  Scott Mathieson 
  Ed Thomas                                    [phone] 
  Nikhil Varghese                               2000 
 
 Peterhouse Capital Limited (Joint Broker)     [phone] 
  Lucy Williams                                 9792 
 
 Tavistock (Financial PR) 
  Nick Elwes                                   [phone] 
  Tara Vivian - Neal                            3150 
 

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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November 15, 2023 02:00 ET (07:00 GMT)