Helium One concerned by lack of progress with SOFORI

Tanzania-focussed helium explorer Helium One Global updated the market on its contractual relationship with SOFORI on Friday, following a recent announcement from Noble Helium.

The AIM-traded firm expressed concerns over the lack of operational and contractual progress in accordance with the terms of the non-binding letter of intent, and had taken legal advice before issuing a rectification notice to SOFORI.

Despite the ongoing issues with SOFORI, Helium One said it remained committed to its drilling schedule for the Tai-C well in the third quarter of the year.

To ensure that the target was met, the company was actively exploring alternative options and evaluating the Drillmec HH102 Marriott rig.

Additionally, Helium One said it had already initiated civil works at the drilling site to expedite the upcoming campaign.

“Whilst frustrating that a definitive contract has not been signed, we continue to work with SOFORI with a view to fulfilling their obligations under the letter of intent,” said chief executive officer Lorna Blaisse.

“In the meantime, we have commenced our civils work at site in order to ensure we can expedite drilling operations as soon as possible once we have a rig secured.”

At 1339 BST, shares in Helium One Global were down 9.33% at 5.03p.

Reporting by Josh White for Sharecast.com.