Helium One Global Ltd Tai-3 well successfully reached TD (5622S)

TIDMHE1

RNS Number : 5622S

Helium One Global Ltd

07 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.

07 November 2023

Helium One Global Ltd

("Helium One" or "the Company")

Tai-3 well successfully reached TD

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

Highlights

-- Tai-3 well has successfully reached a TD of 1,448m measured depth ("MD") having encountered weathered crystalline Basement

-- Elevated helium shows, up to six times above background, have been identified in the Lower Karoo Group and Basement targets

   --    Helium shows increased in frequency and quality with depth, as anticipated 

-- Whilst drilling into Basement, a fracture zone was encountered, which yielded elevated helium readings at the top of the Basement and led to partial losses of drilling mud

-- Forward plan, following maintenance and safety checks, is to pull out of hole and rig up to run wireline for formation evaluation and downhole gas sampling

Details

The component to the iron rough neck was repaired and reinstalled, enabling the Company to drill ahead over the weekend and Basement has now been reached at 1,448m MD. Whilst drilling into the fractured Basement, comprised of metamorphic gneissic rock, the well encountered elevated helium shows up to six times above background. These readings were measured from the drilling mud using the Micro Gas Chromatograph and validated using the onsite portable Mass Spectrometer. This fractured Basement was anticipated, and was one of the Company's primary reservoir targets, therefore encountering elevated helium shows in this zone is very encouraging.

Upon drilling into crystalline Basement, the fracture zone led to partial losses of drilling mud. In order to stop these losses, which are not uncommon in fracture zones, lost circulation material was successfully added to the drilling mud. The decision was then made to call well TD at this stage, whilst the wellbore remains in good condition, and to run wireline logs and take downhole gas samples.

Before wireline operations commence, maintenance and safety checks on rig equipment will be completed to enable the drill string to be pulled out of hole safely and efficiently. The Company will then rig up for wireline and aims to complete all wireline operations, along with preliminary interpretations, before making any further announcements.

The timetable regarding a second well at Itumbula will be determined following the results of the wireline operations at Tai-3.

Lorna Blaisse, Chief Executive Officer, commented:

"We are delighted with the initial results at Tai-3 and it was extremely encouraging to see the helium shows increase with depth, as we had anticipated. We are pleased to have successfully TD'd safely, and managed to address the minor issues with the rig quickly and efficiently.

Given the mud losses encountered once we had reached the fractured Basement, we've decided to TD now so we can minimise any risk to wellbore stability and ensure that we can obtain successful logs and downhole gas samples. We're very much looking forward to commencing wireline operations and further evaluating the well."

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