Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has reiterated that it intends to spud its next well in Tanzania in the first quarter of 2023 at the Tai prospect.
Tai is the most advanced of all leads and prospects identified in Tanzania's Rukwa Basin, the company noted, with data analysis indicating a newly defined closure in the Lake Beds that was not previously targeted.
The primary objective of the 2023 campaign will be proving a helium discovery, it said.
An MOU has been signed with Europe-based contractor Exalo for the drill rig, which will be released from southern Africa on completion of current operations.
As the rig is already operating at depths below the targets at Tai there is no requirement for an independent rig audit, Helium One added.
Baker Hughes' integrated service package will also be transported from the same location as the rig enabling drilling to start as soon as it is set up on site.
Helium One said it had submitted renewal applications for over 12 of its licences but had relinquished acreage covering 1,549 square kilometres saving US$309,000 annually in fees.
In a statement, David Minchin, the company's chief executive, noted: “Helium remains an irreplaceable technology commodity in supply crisis: the board believes that Helium One may have a significant asset which can help resolve this crisis.”
Helium One's losses for the year to end-June 2022 were US$14.2mln (2021: US$5mln) with cash of US$5mln as at the close of the period.