Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said it and its partner Noble Helium have signed a letter of intent (LoI) with Tunisian contractor, SOFORI, to supply a Drillmec HH102 rig to be used in the next drilling campaign on the Rukwa Project in Tanzania.
Helium One's Lorna Blaisse said the move was an 'encouraging first step' towards spudding the well in the third quarter of this year.
Helium One and Noble have signed a cooperation agreement which they hope will lower mobilisation and demobilisation costs.
While contract negotiations are ongoing, SOFORI has assured the companies that the rig has no conflicting commitments in the future.
Consequently, Helium One has already placed orders for long lead items and will provide further updates as the situation develops.
Helium One said it is eager to finalise the LoI and transition it into a definitive contract.