Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said it is reviewing a number of alternative rig options for its Rukwa operation in Tanzania after it unexpectedly lost access to the Exalo drill rig that was supposed to be on-site early this year.
Chief executive David Minchin described the decision by the current operator to pay rig retention costs rather than release the unit as “disappointing and frustrating”.
“However, based on recent rig searches, the company is aware of a number of alternative rigs for our Phase II exploration drilling,” added the Helium One CEO.
“We are rapidly reviewing these options to inform the market with updated rig selection and timeline to drilling.”
A memorandum of understanding was struck for the services of the Exalo rig in November. The decision of the current operator was communicated to the company on Monday (2 January).