Commencement of Drilling

RNS Number : 7182B

Helium One Global Ltd

14 June 2021

 

14 June 2021

Helium One Global Ltd

Commencement of Drilling

Helium One (AIM: HE1) ("Helium One" or "the Company") is pleased to announce the commencement of its exploration drilling programme at the Rukwa Project (100%) in Tanzania.

Highlights:

· Drilling has commenced at Tai; a 'must drill' three-way dip closure, upgraded by the Company's recent 2D infill seismic

· Three well exploration programme targeting shallow trap structures to a maximum depth of 1200m

· Exploration drilling includes:

o  Micro gas chromatograph and mini mass spectrometer used to identify elevated levels of helium in mud and reportable as a helium show

o  Wireline logs to identify reservoir and seal units and to confirm pay zones in success case

o  Drill Stem Testing unit to attempt to flow helium gas samples to surface

· Each well will take circa one month to complete

David Minchin, Chief Executive Officer, commented:

"We are very excited to have commenced exploration drilling, continuing the advancement of the world-class Rukwa project.  The exploration programme is the culmination of five years of dedicated work with three holes testing three different styles of trap.  Each well will take roughly one month to complete with lessons learnt from the first well applied to refine and de-risk drilling of subsequent wells.

"Establishing a drill programme in the midst of a global pandemic is not without challenges and we are thankful to all Mitchell Drilling and Helium One team for their hard work in bringing this project to fruition.

 "We look forward to announcing results of our first well at what is a potentially transformative time for the Company."

Drilling

Helium One commenced exploration drilling at its flagship Rukwa Project in Tanzania at 4pm local time on Saturday 12^th June.  Rukwa is a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.  SRK Consulting have reported a 'Best Estimate' Un-risked prospective recoverable helium resource of 138 Bcf (2U/P50), the largest listed primary helium deposit in the world, with helium measured in surface seeps at up to 10.6% He.

Drilling has commenced at the Tai prospect, a faulted three-way dip closure concurrent with a gravity high which was upgraded from 'low priority' to 'must drill' by the recent 200 line kilometre infill 2D seismic campaign.  The prospect has been chosen as our first well because of the presence of stacked targets within a well-defined structural closure.  By focussing on stacked closures in our first exploration well, Helium One hopes to identify multiple zones with the highest quality seal potential to assist in the planning of subsequent wells.

Helium One's maiden drilling campaign is the culmination of many years of study, growing from early work conducted with the University of Oxford Noble Gas Group to encompass data sets from Airborne Gravity Gradiometry, Macro-Seep sampling and analyses, soil gas surveys, satellite mapping and recent additional infill 2D seismic.  The Company plans a three well programme targeting shallow structures in close proximity to the Itumbula Helium Seeps.  Each well is planned to test a different trapping style, therefore providing information essential in de-risking our portfolio of prospects across the basin.

Drilling of the first well is expected to take approximately one month to complete and will produce valuable information about the subsurface.  Helium detection will be constantly monitored during drilling to identify helium gas shows from mud logging.  On completion, wireline logs will be run to measure formation properties downhole, as well as identifying any pay zones in the success case. Any discovery will be tested with a drill stem test to attempt to flow a sample of gas to surface for grade analysis.

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

Contact

Helium One Global Ltd David Minchin, CEO	[phone]
Beaumont Cornish Ltd (Nominated Adviser) James Biddle Roland Cornish	[phone]
Canaccord Genuity Limited (Joint Broker) Adam James	[phone]
Peterhouse Capital Limited (Joint Broker) Lucy Williams	[phone]
Pello Capital (Retail Broker) Callum Hill	[phone]
Tavistock (Financial PR) Nick Elwes	[phone]

Technical Glossary

Gas-Chromatograph - A piece of analytical equipment that uses a carrier gas to separate the chemical components of a sample mixture to determine how much helium and other gasses are present

Mass Spectrometer - A piece of analytical equipment that is used to measure the mass-to-charge ratio of ions in a sample. The results are presented as a mass spectrum from which gas composition is calculated

Faulted Three Way Dip Closure - A domal structural trap faulted along a single side

Stacked Targets - A target with multiple reservoir intervals that can be tested with a single vertical well

Helium Show - Elevated amounts of helium detected in mud logging on micro gas-chromatograph or mass spectrometer

Pay Zone - A zone identified in wireline logging as a gas saturated reservoir supported by strong helium shows in mud logging

Drill Stem Test - flow testing using inflatable packers to isolate a prospective reservoir horizon and attempt to flow helium to surface

Itumbula Helium Seeps - Location where helium macro seeps have been identified at up to 10.6% He at surface

Notes to Editors

Helium One has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.

Helium One's assets are located within the rift basins on the margin of the Tanzanian Craton. Through Helium One's subsidiary companies Gogota (Tz) Limited, Stahamili (Tz) Limited and Njozi (Tz) Limited, the Company has secured 18 Prospecting Licences covering more than 4,512 km² in three distinct project areas: the Rukwa, Balangida and Eyasi projects. These are located near surface seeps with helium concentrations ranging up to 10.5% He by volume. 

The Rukwa Project is located within the Rukwa Rift Basin covering 3,448km² in south-west Tanzania.  The project is considered to be an advanced exploration project and the company has identified 4 prospects and 21 leads based on historical drilling, reprocessed seismic lines, high resolution gravity survey, and surface seep analyses.

SRK Consulting have reported a 'Best Estimate' Un-risked Prospective Resource of 138 Bcf (2U/P50) for the Company's Rukwa Project, meaning that the project has potentially strategic global implications with the ability to significantly resolve helium supply/demand issues.

All Helium One's licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

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 HOGLF.

 

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