Helium One gets reporting deadline extended as it progresses seismic work

Helium explorer Helium One Global announced progress on its second phase 2D seismic campaign at the wholly-owned Rukwa project on Monday, as well as an extension to its financial reporting deadline.

The AIM-traded firm said data acquisition on its 200 kilometre campaign at Rukwa was ongoing, with the late arrival of rains to the area resulting in “excellent” ground conditions for data acquisition.

As of 18 December, the company had completed 188.5 line kilometres, or 94%, of the originally-planned 200 kilometre survey.

Following encouraging early results, it said it had decided to extend the survey with an additional 20 line kilometres of 2D seismic, to secure additional data over promising targets within the previously-unsurveyed Momba area.

Helium One said it had also agreed with AGS to shoot a 15 kilometre “high resolution” line with five metre source and receiver spacing.

“This experimental line will test the suitability of high resolution seismic to resolve shallow structures and identify potential closures within the topmost 400 metres,” the board explained in its statement.

“The line, which crosses the Tai and Itumbula Highs, will provide valuable data in understanding stratigraphic and structural variation within the poorly resolved shallow and ultra-shallow zone.”

Looking at its current trading, Helium One said it remained well-funded for current exploration activities.

The company said it was “confident” about its phase two exploration campaign, and was in negotiation with a number of rig contractors for mobilisation of a conventional rig to target drilling in the third quarter of 2022.

After paying all due invoices related to phase one drilling, cash reserves available for phase two exploration as of 31 October stood at $11.51m, with liabilities excluding disputed invoices of $0.24m.

As a result of the Covid-19 pandemic, however, Helium One said there had been “unavoidable delays” in the completion of the audit of its Tanzanian subsidiaries, due to the availability of personnel and the movement them in-country to complete stocktakes of inventory items at the camp at Rukwa.

That had subsequently led to a knock-on effect in the UK, in terms of timing for its auditors to review and audit its consolidated accounts.

In line with AIM Regulations, the company said it had been granted an extension of up to three months for the publication of its financial results for the year ended 30 June.

It said it would publish its results “as soon as possible”, no later than 31 March.

“We are delighted with progress at our extended phase two 2D seismic campaign, which has provided high-quality data across the northern extensions of Tai and Itumbula structural highs that are believed to be acting as a charge focus for helium migration,” said chief executive officer David Minchin.

“Based on encouraging early results, the seismic campaign was expanded with an additional 20 line kilometres of acquisition over newly identified leads.”

Minchin said the company remained “well-financed”, and was “looking forward” to updating the market with additional information developed from the phase two campaign once data was processed and interpreted.

“This information will feed into generating additional targets for our 2022 conventional drilling campaign.”

At 1101 GMT, shares in Helium One Global were down 2.36% at 6.63p.