Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) told investors it is continuing to review a number of alternative rig options, should contractor SOFORI not fulfil its obligations in Tanzania.
It comes after neighbouring operator Noble Helium announced it had withdrawn from its contract with SOFORI and signed up an alternative contractor – Britain’s Marriott Drilling Group which is expected to mobilize an identical rig to Tanzania later this month.
Helium One, meanwhile, said it has served SOFORI with a notice of rectification and in the event that the contractor doesn’t proceed then it believes that through an alternative contractor, it can still meet its targeted drilling of the Tai-C well in the third quarter of 2023.
Contracting the Marriot rig, that was selected by Noble, is among the alternate possible options being evaluated by Helium One.
"Whilst frustrating that a definitive contract has not been signed, we continue to work with SOFORI with a view to fulfilling their obligations under the LoI,” said chief executive Lorna Blaisse.
“In the meantime, we have commenced our civils work at site in order to ensure we can expedite drilling operations as soon as possible once we have a rig secured."