Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) chief executive Lorna Blaisse says the explorer is still on track to spud its next well in the third quarter of 2023.
The company, which has potentially one of the largest primary sources of helium in the world, continues to work in preparation of the drill programme – notably it recently secured some funding and inked a non-binding letter of intent (LOI), both of which move it closer to the start of drilling.
It comes after Blaisse took the helm in February, as she was promoted from being Helium One’s principal geologist to replace her predecessor David Minchin.
Blaisse described the agreement of a rig contract as a “huge step forward” though acknowledged that making a public announcement whilst it remained a preliminary and non-binding agreement was not necessarily the company’s preferred communication plan and it may have created unintended anxiety among some investors.
“It's not the way we would ideally have approached this,” Blaisse said in an interview with Proactive. “And I certainly did say at the recent AGM that we wouldn't be announcing an LOI so I can understand why this has perhaps made some of our shareholders a little bit nervous.
“However, given that we've been collaborating with Noble Helium on rig share options, and this is in order to reduce our mobilisation and demobilisation costs, they were very keen to announce on the ASX, which is understandable.
"And obviously, as a result of us being a listed and regulated company, we were then duty bound to follow on from that announcement.”
Looking forward to the well programme, Blaisse highlighted that it is still on track for a Q3 spud, with the execution of the contract now being a key focus.
Noble, meanwhile, is pursuing a farm-out transaction to fund its own side of the proposed cost-sharing contract.
Blaisse told Proactive that it is her company’s preference to preserve capital through the cost-sharing arrangements but its successful equity raise ensured it would be capable of covering its funding requirements.
"We undertook a very successful fundraising exercise at the end of last year... [we are] fully funded going forward through to our phase two drilling campaign for this year," she said.
The drill rig is currently in North Africa, undergoing routine maintenance and inspection after completing its latest drilling campaign.
Helium One has conducted its own independent inspection of the rig, confirming it to be mechanically and electronically sound.
The rig is expected to be shipped to Tanzania within four to six weeks, with the aim of having it in the country for Q3.
Helium One has started ordering long lead items, including casing wellheads and cementing accessories.
Blaisse explained that these items are generally non-rig specific, allowing the company to purchase them in advance in a timely and cost-effective manner (even though the current contract remains non-binding).
When asked about exploring other potential rig options, Blaisse stated that Helium One remains confident in executing the contract, but the company has maintained relationships with several other providers in parallel over the past few months.
The finalisation of a drill schedule will continue to be something that investors in Helium One will be watching closely as the targeted Q3 operating window approaches.
Given the support shown in the company’s December placing, evidently shareholders see Helium as well prepared for any potential challenges ahead.
The prize remains very significant and in the meantime, the market awaits further signals that the pivotal well programme is approaching.