Following today’s announcement that Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has kicked off drilling for the Tai-3 well in Tanzania, analysts at SP Angel suggested the group is now “fully funded” to move onto a second exploration well on the Itumbula prospect ahead of the wet season.
Helium One previously suggested that Itumbula drilling would commence immediately after the Tai-C programme, using proceeds from a £6.8 million subscription and retail offer.
“With a new management team in place, the company has made good on a commitment to shareholders to test the helium potential within the Rukwa Rift Basin onshore south-west Tanzania,” said SP Angel.
The Rukwa project was de-risked by the 2021 drilling campaign, which identified a reservoir and seal with multiple prospective intervals from the basin to near-surface located close to surface seeps with helium concentrations ranging up to 10.6% He by volume.
However, SP Angel noted that the science around helium exploration “is still in its infancy”.
As such, analysts look forward to the drilling results from Helium One in the fourth quarter “to shed further light on the region’s potential helium prospectivity and commerciality”.