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Scirocco Energy PLC (SCIR)

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Monday 22 March, 2021

Scirocco Energy PLC

Helium One Update

RNS Number : 9456S
Scirocco Energy PLC
22 March 2021
 

22 March 2021

 

Scirocco Energy plc

("Scirocco" of "the Company")

Helium One Update

Appointment of Drilling Contractor

Scirocco Energy (AIM: SCIR), notes the positive update provided by Helium One Limited ("Helium One") (AIM: HE1) this morning, announcing the appointment of Mitchell Drilling Limited as drilling contractor for the Company's maiden three well exploration programme on  its Rukwa Project (100%) in Tanzania.  Mitchell Drilling will mobilise a drill rig from Tanzania which is anticipated to commence work in mid-May.

Highlights

· Drilling targeted to commence in mid-May.

· Accelerated mobilisation with rig already in country.

·Option for Mitchell Drilling to take payment for 3rd hole as equity demonstrating commitment and confidence in the project.

·Option to expand exploration programme with 4th hole, which would also be payable as equity to Mitchell Drilling.

· Identified rig has capability to remain on site for follow-on appraisal drilling, saving cost and time in demobilisation and remobilisation of camp and equipment.

Details

Helium One have agreed contract terms with Mitchell Drilling for completion of a three hole exploration programme at its 100% owned Rukwa project in Tanzania.  Mitchell Drilling is a global leader in drilling technologies with over 50 years' experience and 115 rigs globally.

As a demonstration of support for the programme, Mitchell Drilling have agreed to upgrade the drill-rig and supply a larger rig at no additional cost.  The selected rig offers increased capacity, providing additional drilling power to the exploration campaign.  Importantly the rig is capable of drilling a 6¾" diameter hole to 1,200 metres, making it suitable for appraisal drilling subsequent to a discovery.

By moving directly from exploration to appraisal drilling without having to demobilise and remobilise equipment, Helium One will be able to dramatically accelerate the development of the Rukwa Project whilst also reducing associated costs. This will allow the Company to advance rapidly from discovery to resource evaluation.

Under the terms of the agreement, Mitchell Drilling may give notice at any time after the results from the first hole are announced to take payment in equity for the drilling of the third hole in the programme.  The Shares will be valued at a 10% discount to VWAP (volume weighted average price) calculated from commencement of hole one to the date that the equity notice is given.  Additionally, the parties may agree to drill a fourth hole for equity, with shares valued at a 10% discount to VWAP calculated from commencement of hole one to the date that the second equity notice was given.

Helium One and Mitchell Drilling are targeting a date in mid-May for the commencement of drilling activity. 

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

 

 

For further information:

 

Scirocco Energy plc

Tom Reynolds, CEO

Doug Rycroft, COO

+44 (0) 20 7466 5000

 

Strand Hanson Limited, Nominated Adviser

James Spinney / Ritchie Balmer / Rory Murphy

 

+44 (0) 20 7409 3494

 

 

WH Ireland Limited, Broker

Harry Ansell / Katy Mitchell  

 

+44 (0) 0207 220 1666

 

 

Buchanan, Financial PR

Ben Romney / Kelsey Traynor / James Husband

 

 

+44 (0) 20 7466 5000

 

 

 

 

Notes to Editors

 

Helium One is an independent specialist explorer focuses on delineating and developing significant helium assets in Tanzania. This company holds more than 4,500 square km of exclusive licences encompassing four project areas, the largest of which is Rukwa. Scirocco holds a 4.3% interest in Helium One.

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