Helium One begins drilling next well at Rukwa

Helium One announced the start of drilling operations at the Tai-2 exploration well on Thursday, at its wholly-owned Rukwa Project in Tanzania, being the second exploration well targeting the Tai prospect.

The AIM-traded firm said the well was targeting prospective Lake Bed stratigraphy, which was identified but not fully evaluated in Tai-1.

It said Tai-2 is located about 20 metres from Tai-1, using the same drill pad, saving time and money in relocation compared to mobilising from one site to another.

Tai-1 de-risked the Rukwa Basin by proving a working helium system, the board explained, as the company continued exploration on the 3,500 square kilometres of untested licences in the Rukwa area.

With confirmation of a working helium system, it added that Tai-1 supported ongoing exploration, with helium shows identified at multiple stratigraphic intervals.

The drilling at Tai-2 would test one of several targets highlighted for additional exploration following those positive results from Tai-1.

“Having proven a working helium system with Tai-1, Helium One has substantially de-risked the Rukwa basin,” said chief executive officer David Minchin.

“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.

“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.”

Minchin said the company was “delighted” to have started drilling activity at Tai-2, testing shallower targets that were not fully evaluated in Tai-1.

“Tai-2 is approximately 20 metres from Tai-1, is on the same drill pad and uses the same infrastructure, therefore saving time and money by drilling here rather than moving on to a new location.

“We are excited to continue with our 2021 exploration campaign with drilling at Tai-2.”

At 1611 BST, shares in Helium One Global were up 26.87% at 14.59p.