Project Update

RNS Number : 4634L

Helium One Global Ltd

03 January 2023

 

03 January 2023

Helium One Global Ltd

("Helium One" or "the Company")

Project Update

Helium One Global (the "Company") (AIM: HE1), has been informed that the current operator of the Exalo drill rig in southern Africa has amended their contract with Exalo to allow for an extension of their operations for a period of up to twelve-months. 

Through the execution of a non-binding Memorandum of Understanding, announced on the 22^nd of November, the Company had understood that the Exalo rig was due to be mobilised to our Rukwa licence area in early 2023.  The Company continued in good faith to negotiate detailed mobilisation and logistics arrangements until unexpectedly notified on the 2^nd of January that contract terms between Exalo and the operator had changed. 

The Company is reviewing a number of alternative rig options for Phase II Tanzania drilling operations and will announce an updated timeline to drilling once new arrangements have been confirmed.

David Minchin, Chief Executive Officer, commented:

"The decision by the current operator to pay rig retention costs rather than release the unit is both disappointing and frustrating.  However, based on recent rig searches, the Company is aware of a number of alternative rigs for our Phase II exploration drilling.  We are rapidly reviewing these options to inform the market with updated rig selection and timeline to drilling.

"The Company remains in a strong position based on a sound geological prognosis and with team, finances, and subsurface targets in place.  We are committed to the delivery of a successful Phase II exploration drilling campaign as early in 2023 as possible."  

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

Contact

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

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences totalling more than 2,964km² 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 1,900km² 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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