Helium One ready to move to next phase at Rukwa 'rapidly'

Helium One announced the completion of its 2021 exploration drilling campaign on Thursday, with “significant” new data to move rapidly to the second phase of exploration work, at its wholly-owned Rukwa Project in Tanzania.

The AIM-traded firm said the campaign had defined a working helium system in the Rukwa Basin, de-risking its 3,500 square kilometre licence area.

It added that a greater knowledge of the helium geology allowed the identification of 'shallow' and 'deep' target types for the second phase of exploration.

The new 'shallow' targets could be investigated by appropriate geophysical techniques to identify prospects for low-cost drilling, while the new 'deep' structural targets beneath the “well-developed” 130 metre-thick Top Karoo seal could be investigated by 2D infill seismic on defined gravity targets.

Helium One said it was “well-financed”, with £10m to advance the Rukwa Basin towards discovery.

Tai-2, although completed without identifying helium gas, had also provided valuable information on shallow trap and seal potential, the board added.

“Work undertaken so far in 2021 has significantly de-risked the Rukwa Basin by demonstrating a working helium system,” said non-executive chairman Ian Stalker.

“Helium One maintains 100% ownership of licences at Rukwa covering approximately 3,500 square kilometres in what must now be considered the world's premier basin for helium exploration.

“With our maiden exploration campaign clearly demonstrating prospectivity at multiple levels across the basin, the company can now move rapidly to develop a phase 2 exploration programme that offers value for money.”

Stalker said that, using various geophysical techniques, the firm could “quickly and cheaply” advance both 'shallow' and 'deep' target types, to de-risk its ability to make a commercial discovery with phase 2 drilling.

“The company is well-financed to deliver phase 2, with a focus maintained on cost-effective exploration as we develop Rukwa towards discovery.”

At 1244 BST, shares in Helium One Global were down 28.71% at 8.84p.