Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) told investors it has now secured an alternate drill rig for its proposed Tai-C well programme in Tanzania, which is still slated for the third quarter of 2023.
The exploration company, in a statement, said it has acquired an Epiroc Predator 220 drilling rig - an oil and gas type rig capable of drilling to depths in excess of 2,000 metres – which is already in Tanzania and is being mobilised to Helium One’s Rukwa project.
It described the deal as a “significant achievement” and highlighted that ownership of the rig provides the opportunity to move quickly into further exploration drilling.
Moreover, subject to results, the company expects that it can advance the appraisal of the Tai prospect without additional costs related to keeping a rig on standby or the challenges of mobilising rigs to the country.
"We are delighted to finally have reached this significant milestone of securing a rig for our Q3 drilling programme in Rukwa,” said Helium One chief executive Lorna Blaisse.
With the rig now enroute, Helium One noted that other work streams are underway to ensure drilling can commence in September – civil works are underway, it is ordering remaining well equipment, and it is sourcing an experienced rig crew.
"This has been an exceptional effort by all the team to ensure we had an executable option after recent disappointments and setbacks, in order to still fulfil our Q3 drilling target.
“I am very thankful to them for their tireless efforts over the past few months and I'm confident we have an excellent team in place to deliver the next phase of the project as well as any appropriate follow-on campaigns," Blaisse added
Helium One chair Ian Stalker commented: “This is indeed a milestone event for the company and opens up a range of ancillary options for the company as well as, most importantly, securing the control of our own drilling programme and any future appraisal and further exploration activities.
He added: “This rig acquisition is a strategic move in ensuring fast-track appraisal and development in a success case at Tai.
“The rig has been mobilised from the East Africa region and, when compared to mobilising rigs in from elsewhere, the cost differential is significant- in simple terms more cost-effective and time efficient."