Identification of Helium Enriched Gas Shows

RNS Number : 4753C

Helium One Global Ltd

21 June 2021

 

21 June 2021

Helium One Global Ltd

Identification of Helium Enriched Gas Shows in the Lake Bed Formation

Helium One (AIM: HE1) ("Helium One" or "the Company") is pleased to announce the presence of  helium enriched gas in drilling mud (a "Gas Show") in the Lake Bed Formation while drilling Tai-1 well at the Rukwa Project (100%) in Tanzania.

Highlights:

· Helium shows identified in shallow strata from 70.5 metres

· Micro-Gas Chromatograph showing He concentrations up to 22,084ppm (2.2%) He in gas recovered from drilling mud

· Drilling operations will continue to the base of Lake Bed Formation, anticipated to be at 400 metres, before wireline logging can provide additional information

David Minchin, Chief Executive Officer, commented:  

"We are very excited to have identified the presence of helium in drilling mud from very shallow depth.  Drilling will now continue to the base of the Lake Bed Formation at which point we will run wireline tools to obtain more detailed formation evaluation.

"Although concentrations of 2.2% He are encouraging indicators of free gas, it is important to note that a helium show is not evidence of commerciality and further evaluation is required by wireline logging to confirm any potential pay zones.  It is also important to note that gas concentrations encountered in mud logging are qualitative rather than quantitative and in-situ grade may be higher or lower than what is measured.

"With over 1000 metres still to drill at Tai-1 these are early days in our exploration drilling.  Early helium shows give us a great deal of optimism for the remaining programme and we look forward to providing further updates as the project develops."

Details

Helium One commenced exploration drilling at its flagship Rukwa Project in Tanzania at 4pm local time on Saturday 12^th June.  Drilling progressed slowly through soft surface sediment until conductor casing was cemented at a depth of 55 metres, allowing 24 hour 'PQ' size open hole drilling operations to commence from approximately 5pm local time on Saturday 19^th June.

At approximately 6:30pm local time on Saturday 19^th June, at a depth of 70.5 metres, the Helium One mud logging crew detected helium in mud at a concentration of 22,084ppm (2.2%) He.  The gas show is situated at the base of a 20 metres thick shale unit and persisted at >10,000ppm (>1%) He for 4-6 meters.  Readings were made on the Micro Gas Chromatograph only, which had not yet been calibrated in the field.

Drilling will continue to the Base of the Lake Bed Formation, anticipated to be at 400 metres.  At this point the Company will then commence wireline logging to gain additional information on the formation reservoir characteristics and identify any potential pay zones.  After logging the Lake Bed Formation, this section of the hole will be cased and drilling will continue to Basement.

Due to the poorly consolidated nature of the Lake Bed Formation encountered at Tai-1, it will not be possible to perform drill stem tests on any pay zones identified in the shallow strata in this well.  This is to remove the risk of hole collapse during flow testing and ensure that Tai-1 can continue to test prospective closures at depth in the Red Sandstone and Karoo Formations.

Tai-1 is the first well in a three well programme targeting shallow structures in close proximity to the Itumbula Helium Seeps. The prospect has been chosen as our first well because of the presence of stacked targets within a well-defined structural closure.  Each well is expected to take approximately one month to complete and are planned to each test a different trapping style, therefore providing information essential in de-risking our portfolio of prospects across the basin.

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]

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.

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

Technical Sign off

Lorna Blaisse, the Principal Geologist of the Company, who has over 15 years of relevant experience in the Oil and Gas Industry, has approved the information contained in this announcement. Lorna Blaisse is a fellow of the Geological Society of London and a member of Petroleum Exploration Society of Great Britain.

 

END

 

 

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