Shares in Helium One (HE1 ) soared after it confirmed that it has commenced drilling operations at the Tai-2 exploration well at its 100% owned Rukwa Project in Tanzania.
The Company, which remains focused on developing what it has described as ‘a globally unique, large-scale, high-grade, primary helium project in Tanzania, said it has now initiated exploration drilling at the Tai-2 well, the second exploration well targeting the Tai prospect.
The Tai-2 well, which is targeting prospective Lake Bed stratigraphy, which was identified but not fully evaluated in Tai-1, is located around 20m from Tai-1 and utilises the same drill pad, ‘saving time and money in relocation compared to mobilising from one site to another.’
Tai-1 has de-risked the Rukwa Basin by proving a working helium system, the Company informed investors. ‘With 3,500km2 of untested licences in the Rukwa area, Helium One is excited to continue exploration in this highly prospective helium basin,’ it highlighted.
With confirmation of a working helium system, Helium One explained that Tai-1 ‘supports ongoing exploration with helium shows identified at multiple stratigraphic intervals.’
The Company stated that drilling at the Tai-2 well will test one of several targets highlighted for additional exploration following previous positive results from the Tai-1 exploration well.
Commenting on the drilling, CEO, David Minchin, said: "Having proven a working helium system with Tai-1, Helium One has substantially de-risked the Rukwa basin. Demonstration of seal and reservoir, as well as helium shows at multiple stratigraphic levels, indicates a working system in which free helium gas is waiting to be discovered.”
Shares in Helium One have increased by over 70% in value since the beginning of 2021. The stock was trading 25.22% higher during late morning trading at 14.4p following the news.
Minchin explained that drilling at Tai-2, which is around 20m from Tai-1, will test shallower targets that were not fully evaluated in Tai-1. Minchin also stated that Tai-2 is on the same drill pad as Tai-1 and uses the same infrastructure ‘which therefore saves time and money.’
Helium One maintains 100% ownership of licences at Rukwa covering around 3,500km2 in what must now be considered the world's premier basin for helium exploration.
The Company’s Rukwa project is considered to be an advanced exploration project and to date, 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 Helium’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.
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