TIDMHE1
RNS Number : 5192M
Helium One Global Ltd
24 May 2022
24 May 2022
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.
Helium One Global Ltd
("Helium One" or "the Company")
Operational Update
Helium One Global (AIM: HE1), the primary helium explorer, is
pleased to provide an update on progress at its Rukwa (100%)
project area in Tanzania including details of its planned 2022
drilling campaign.
Highlights:
-- Focus on discovery through drilling of Tai prospect
-- Drill location guided by Phase II seismic which has improved
definition of the Tai structure and identified an untested
closure
-- Well Tai1/1A provided detailed information on reservoir and
seal, and the identification of subsurface helium which proves a
working helium system
-- Due diligence and contract negotiations ongoing for a drilling rig located in East Africa
David Minchin, Chief Executive Officer, commented:
"We are delighted to be pressing ahead with our Phase II
programme with a priority drill target identified. We are
maintaining our focus on cost effective exploration with an
emphasis on defining a discovery in 2022.
"Our decision to return to Tai has been driven by the
interpretation of the Phase II 2D Seismic which, not only improved
the definition of a robust structural closure in the Karoo Group,
but also identified an untested closure in the Lake Bed Formation.
Geological risk at Tai has been better understood from detailed
stratigraphic data and the recognition of helium shows identified
in the 2021 drilling campaign. With the highest chance of
geological success and a robust closure at multiple stratigraphic
levels, the Tai prospect gives us the best opportunity to make an
economic discovery that unlocks the potential of the Rukwa helium
province.
"With a drilling rig identified and contract negotiations
ongoing we look forward to a successful exploration campaign in
2022."
Tai Prospect
Helium One plans to commence 2022 Phase II exploration drilling
operations at the Tai prospect which is the most advanced of all
leads and prospects identified in the 3,448km(2) Rukwa basin.
Management have been encouraged to select Tai as their primary
target by new data taken from the Phase II 2D Seismic campaign
acquired in November and December 2021 and processed in early 2022.
This interpretation, which is now complete, has not only provided
improved resolution over the Tai structural closure, but has also
identified a newly defined closure in the Lake Beds which was not
previously targeted.
Drilling at Tai is supported by stratigraphic information from
the 2021 drilling campaign. QEMSCAN analysis on cuttings has
provided information on reservoir distribution, mineralogy, seal
potential and grain size of the entire sedimentary sequence at
Tai-1/-1A, indicating good to excellent quality reservoir. It also
confirms the presence of a thick claystone unit at the top of the
Karoo Group as well as the presence of intraformational claystone
and calcrete interbeds within the Lake Bed Formation.
The Tai prospect is further understood by the identification of
multiple helium shows (helium identified in drilling mud) across
all formations but which the Company was unable to log or test with
wireline equipment. With a robust structural closure, detailed
information on reservoir and seal, and the identification of
subsurface helium which proves a working helium system, Tai is the
lowest risk prospect in our current AOI of the Rukwa Basin for the
Company to focus exploration expenditure with a primary objective
of confirming a discovery in the 2022 campaign.
Drilling services
The Company is in detailed discussions with both a rig operator
and service companies with the objective of drilling the Tai
prospect in Q3/Q4 2022, before the commencement of the rainy
season.
The Company has contacted an international drilling rig survey
and inspection company to undertake a detailed audit of the
proposed rig and its ancillary equipment on location in East
Africa.
Further details, including the scope of the drilling program,
will be provided once the audit is complete and the contract has
been signed.
Phase III Exploration
Helium One is committed to ongoing exploration across all three
licensed basins. Detailed 2D Seismic from Phase I and Phase II
campaign covers less than 10% of the Rukwa license, with much of
the basin remaining unexplored.
The Company is about to undertake a fieldwork programme in the
Balangida Basin to ground truth helium seeps identified in recent
multispectral satellite spectroscopy data. The Company is also in
the process of purchasing high resolution airborne gravity
gradiometery data across the Eyasi and Balangida basins with a view
to continue its exploration focus with a maiden 2D seismic campaign
targeted for Q4 2022.
Issue of shares
Helium One has issued 2,077,284 new ordinary shares of no par
value ("Ordinary Shares") to multiple service providers in lieu of
cash payment (the "New Shares"). Application will be made for the
admission of the New Shares to trading on AIM ("Admission"). The
New Shares will rank pari passu with the existing Ordinary Shares
and it is expected that Admission will become effective at 8.00
a.m. on 30 May 2022.
Following Admission, the Company's issued share capital will
consist of 618,070,467 Ordinary Shares with voting rights. Helium
One does not hold any Ordinary Shares in treasury. This figure of
618,070,467 may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they require to notify their interest in, or a change to their
interest in, the share capital of the Company under the UK
Financial Conduct Authority's Disclosure Guidance and Transparency
Rules.
For further information please visit the Company's website:
www.helium-one.com
Contact
Helium One Global Ltd +44 20 7920
David Minchin, CEO 3150
Liberum Capital Limited (Nominated
Adviser and Joint Broker)
Scott Mathieson
Ed Thomas +44 20 3100
Nikhil Varghese 2000
Peterhouse Capital Limited (Joint Broker) +44 20 7220
Lucy Williams 9792
Tavistock (Financial PR)
Nick Elwes +44 20 7920
Tara Vivian - Neal 3150
Notes to Editors
Helium One Global, the AIM-listed Tanzanian explorer, holds
prospecting licences totalling more than 4,512km(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 3,448km(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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