Helium One reports progress at Rukwa project

1st Jul 2024 11:11

(Sharecast News) - Tanzania-focussed helium explorer and developer Helium One Global updated the market on operations at its Rukwa project on Monday, where preparations were underway for an extended well test (EWT) at the Itumbula West-1 (ITW-1) site.

The AIM-traded company said it was on track to deepen the ITW-1 well and begin the EWT in July, targeting a fault-fracture helium play.

It said a company-owned rig was on-site, with third-party services set to rig up ahead of the spud.

Additionally, Helium One said it had acquired well control equipment to complement its drilling rig, and appointed an experienced drill crew, with personnel mobilisation currently underway.

Long lead items were arriving at the site in preparation for the July spud, and camp personnel and medical support are being remobilized to the location.

Helium One said it had executed a contract with SLB - formerly Schlumberger - to provide cementing, drilling and completion fluids services, as well as surface well test equipment and services.

GeoLog International was contracted to supply mudlogging services.

Laboratory results of helium samples from ITW-1 were consistent with measurements made by the onsite field PVT laboratory.

Furthermore, the company said it was ready to start the second phase of fieldwork for the environmental and social impact assessment (ESIA) study, which was required for the feasibility study.

Both the feasibility study and subsurface modelling were underway, ready to integrate EWT results ahead of the mining licence application.

"As we fast approach the next operational phase, we are on track to commence the crucial EWT operations at Itumbula West-1 in July," said chief executive officer Lorna Blaisse.

"This is a very exciting time for the company, as the test will enable us to determine commercial flow rates, reservoir performance and helium concentrations over a longer period of time.

"The results of this EWT will enable us to better determine resource estimates and fully evaluate the potential of this new fault-fracture helium play we have at Itumbula."

Blaisse said the company had been focussed to meet the timelines over recent months, including the ordering and delivery of long lead items, integrated subsurface modelling and engineering in order to form the basis of a feasibility study which would be required to apply for a mining licence to enable a move into project development once the EWT was complete.

"We're very grateful to the Ministry of Minerals and the Mining Commission in Tanzania as well as the local communities in which we operate, for their ongoing support shown towards the company and the advancement of the southern Rukwa helium project.

"I would like to thank the team for their immense hard work over the last few months and the efforts that they have put in to get us to this stage.

"We are very excited about the EWT and the results that we believe it will yield, confirming the helium potential at Itumbula."

At 1104 BST, shares in Helium One Global were up 10% at 0.8p.

Reporting by Josh White for Sharecast.com.