REG - Helium One Global Ld - Sustained helium flow at ITW-1

Helium One GlobalAnnouncement

04/09/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240904:nRSD7917Ca&default-theme=true

RNS Number : 7917C  Helium One Global Ltd  04 September 2024

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit)
Regulations 2019.

 

04 September 2024

 

Helium One Global Ltd

("Helium One" or "the Company")

 

Sustained helium flow at ITW-1 following successful completion of EWT
operations

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is
pleased to confirm a helium discovery following completion of its extended
well test ("EWT") operations at Itumbula West-1 ("ITW-1") which successfully
flowed a sustained average of 5.5% helium (air corrected) from the fractured
Basement and flowed a sustained average of 5.2% helium (air corrected) to
surface from the faulted Karoo Group.

Highlights

·    Successful completion of EWT operations at ITW-1 and demobilisation
now underway

·    Fractured Basement interval flowed a sustained average of 5.5% helium
(air corrected) to surface and up to a maximum of 6.7% helium (air corrected)

·    Faulted Karoo Group interval flowed a sustained average of 5.2%
helium (air corrected) to surface and up to a maximum of 7.9% helium (air
corrected)

·    The fractured Basement interval also flowed up to 1.1% hydrogen to
surface

·    The well flowed naturally at a maximum flow rate of 2,701 barrels per
day ("bpd") of fluid on a 36/64ths of an inch choke setting which equates to
834 standard cubic feet per day ("scf/d") of helium

·    Internal modelling demonstrates that this could increase to 20,000
bpd of fluid with artificial lift in the development phase. On this basis, the
Company estimates the actual flow rate would increase to 6,176 scf/d of
helium, when applying an average concentration of 5.5% helium

·    The fractured Basement interval flowed naturally for a period of six
days with helium gas in solution, and little air contamination in what has
been determined to be a pure helium/nitrogen mix

·    Gas samples were also collected for additional laboratory analysis
when required

·    Preliminary internal financial modelling demonstrates positive
project economics with artificial lift and additional development wells

·    The Company is now integrating the results of the EWT and finalising
its feasibility study ahead of submitting a Mining Licence ("ML") application

·    Zero Lost Time Injuries ("LTI") during the EWT operations at ITW-1

·    Non-productive time ("NPT") for the Company owned Epiroc Predator 220
drilling rig during EWT operations was 2.5%

 

Lorna Blaisse, Chief Executive Officer, commented:

"This is yet another huge milestone for the Company and we are delighted to
have successfully flowed helium, of significant concentration, to surface from
both intervals during the EWT. The well was flowed naturally during the
testing and based on the recorded flow rates, with the addition of artificial
lift in the production phase this becomes a globally significant helium
project in southern Rukwa.

I'd like to extend my thanks to the teams who have worked exceptionally hard
over the past twelve months ensuring that, as a Company, we overcame the
challenges of securing a suitable drilling rig, successfully delivered a
two-well exploration programme, successfully carried out a drill stem test on
ITW-1 and then moved very quickly into an EWT to establish viability for this
project. This is a significant achievement in a very short time frame, and I
am delighted to now be moving this project forward and bringing it a step
closer to development.

The Company extends their thanks and appreciation to the Ministry of Minerals,
the Mining Commission and University of Dar es Salaam for their engagement and
ongoing support of this project. We'd like to also extend our appreciation to
the local communities we work within in southern Rukwa for their support
during each phase of the operations."

 

Details

The Company has now successfully completed its EWT at ITW-1 across the two
target intervals. The first tested interval was the faulted Karoo Group which
flowed a sustained average of 5.2% helium (air corrected) to surface and up to
7.9% helium (air corrected). Subsequently, the fractured Basement interval has
now been tested and flowed a sustained average of 5.5% helium (air corrected)
to surface and up to 6.7% helium (air corrected). The well also flowed up to
1.1% hydrogen to surface from the fractured Basement interval.

The fractured Basement interval flowed naturally for a period of six days with
helium gas in solution, and little air contamination in what has been
determined to be a pure helium/nitrogen mix. The well flowed naturally at a
maximum flow rate of 2,701 bpd of fluid on a 36/64ths of an inch choke setting
which equates to 834 scf/d of helium. Internal modelling by the Company
demonstrates that this could increase to 20,000 bpd of fluid with artificial
lift in development phase. On this basis, the Company estimates the actual
flow rate would increase to 6,176 scf/d of helium, when applying an average
concentration of 5.5% helium.

The gas compositional analysis of 5.2% helium (uncorrected) was associated
with 1.6% argon, 4.9% oxygen and 88.3% nitrogen. This data was subsequently
air corrected to yield 6.7% helium. These results were evaluated using an
onsite Mass Spectrometer and verified from downhole samples by a field PVT
laboratory at the well site.

Downhole temperature measurements recorded up to 88°C from the production
logging tool, which is consistent with the drill stem test results and likely
to be derived from hot Basement-derived fluids. It is believed that these
fluids are carrying the helium in solution preferentially along faults and
fractures from deep within the Basement source.

Following the completion of the EWT across the fractured Basement, a short
co-mingled test of both intervals was conducted. Gas samples were collected at
regular intervals throughout the EWT operation and will be used for additional
laboratory analysis as and when required.

There were zero LTI incidents during the entire EWT phase. NPT for the Company
owned Epiroc Predator 220 drilling rig during EWT operations was 2.5%, which
equates to 21 hours of critical path activity and falls well within the
allocated 'maintenance time' for a remote project in sub-Saharan Africa.

Next Steps

Preliminary economic and subsurface modelling by the Company demonstrates
positive economics with artificial lift, and what is anticipated to be in the
region of twenty to thirty development wells in the production phase. The data
continues to be evaluated by the Company's subsurface team and will be
integrated into a Feasibility Study, which will form the Mining Licence
application, and demonstrate to the Mining Commission of Tanzania the
viability of the Itumbula Project. The Application will be submitted in the
next two weeks.

 

For further information please visit the Company's website: www.helium-one.com
(http://www.helium-one.com)

 

Contact

 Helium One Global Ltd                                         +44 20 7920 3150

 Lorna Blaisse, CEO

 Graham Jacobs, Finance and Commercial Director

 Panmure Liberum Limited (Nominated Adviser and Joint Broker)  +44 20 3100 2000

 Scott Mathieson

 Nikhil Varghese

 Zeus Capital Limited (Joint Broker)                           +44 20 3829 5000

 Simon Johnson

 Louisa Waddell

 Tavistock (Financial PR)                                      +44 20 7920 3150

 Nick Elwes

 Tara Vivian-Neal

 

 

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting
licences across three distinct project areas, with the potential to become a
strategic player in resolving a supply-constrained helium market.

The Rukwa, Balangida, and Eyasi projects are located within rift basins on the
margin of the Tanzanian Craton in the north and southwest of the country. The
assets lie near surface seeps with helium concentrations ranging up to 10.6%
helium by volume. All Helium One's licences are held on a 100% equity basis.

The Company's flagship southern Rukwa Project is located within the Rukwa Rift
Basin covering 1,900km(2) in south-west Tanzania.  This project is considered
to be entering an appraisal stage following the success of the 2023/24
drilling campaign, which has proved an established helium system where the
Itumbula West-1 exploration well successfully flowed 4.7% helium to surface in
Q1 2024.

Following a successful operation to extend the depth of the well, and a
follow-on extended well test undertaken in July and August 2024, the Company
has now flowed significant quantities of helium to surface and is in the
process of filing a Mining Licence application with the Mining Commission of
the Tanzanian Government. Helium One is listed on the AIM market of the London
Stock Exchange with the ticker of HE1 and on the OTCQB in the United States
with the ticker HLOGF.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUOUARSSUKRUR