Noble Helium, an Aussie-listed junior, has raised A$13.5mln (£7.25mln) for its next exploration well at Rukwa in Tanzania, underlining the growing interest in the area as a potential source of the gas.
Money raised will fund a first helium exploration well at North Rukwa and also for long lead items on a second well planned at the site.
Justyn Wood, chief executive, said the costs for the wells will be much less than originally estimated because of the company’s 50/50 co-operation agreement with UK-listed Helium One.
“The farm-out process elicited strong interest from many large industry players, who have remained engaged. Controlling 100% of all our projects creates significant scope for further engagement with these parties in the post-drilling stage,” Wood added.
Noble Helium estimates a mean prospective helium resource of 16.5bn cubic feet within the structures it is targeting, noting that 14 other holes already drilled along the same structure in Kenya and Uganda were 100% successful.
Helium One Global owns the neighbouring licence to Noble Helium and the pair will use the same drilling rig for both their operations in the Rukwa Basin.
AIM-listed Helium One recently said it had signed a letter of intent on a drill rig from Tunisian contractor SOFORI and expected to begin exploration in the third quarter of this year.