Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has been given some early encouragement post-drilling the Tai-3 well in Tanzania, with helium shows registering up to six times the background levels.
This notable result was made in the Lower Karoo Group and the Basement targets, with the concentration of inert gas increasing progressively with depth, a promising sign that aligns with the company's initial projections.
The Tai-3 well, which has now reached a measured depth of 1,448 meters, encountered a geological Basement, confirming the presence of weathered crystalline formations.
The increased frequency and quality of helium shows with depth have bolstered the company's confidence in the well's potential.
"We are delighted with the initial results at Tai-3 and it was extremely encouraging to see the helium shows increase with depth, as we had anticipated," said chief executive Lorna Blaisse.
"We are pleased to have successfully TD'd safely, and managed to address the minor issues with the rig quickly and efficiently."
In the report, Helium One said it drilled into the Basement zone, finding a fracture zone with elevated helium readings, but also suffered a loss of drilling mud in the process.
"Given the mud losses encountered once we had reached the fractured Basement, we've decided to TD now so we can minimise any risk to wellbore stability and ensure that we can obtain successful logs and downhole gas samples," said Blaisse.
"We're very much looking forward to commencing wireline operations and further evaluating the well."
The company is now preparing for the next phase of operations, which includes comprehensive maintenance and safety checks. These are essential precursors to the wireline logging and downhole gas sampling that will provide a more detailed evaluation of the well's potential.
The results from the Tai-3 well have set a positive tone for Helium One Global's exploration activities in the region. The company's forward plan is to complete wireline operations and preliminary interpretations before proceeding with further announcements.
The decision to drill a second well at the Itumbula site will be contingent on the insights gained from the wireline operations at Tai-3.