In an interview with Lorna Blaisse, CEO of Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF), we delve into the company's recent activities and strategic decisions following the conclusion of their exploration work at the Tai-3 well in Tanzania.
Helium One, an AIM-listed Tanzanian explorer, faced challenges but also achieved noteworthy progress, revealing significant findings about helium concentrations.
In this conversation, Blaisse discusses the decision to move the rig from Tai-3 to the next promising site at Itumbula, outlines the impact of its findings on future strategies, and provides insight into the logistical aspects of their operations.
Her detailed explanations shed light on the complexities and adaptive strategies in the field of resource exploration, offering a glimpse into the dynamic world of Helium One.
Thomas Warner: LB, after the conclusion of work at the Tai-3 well, can you give us a summary of today's announcement?
Lorna Blaisse: Of course, TW. At Tai-3, we successfully drilled deeper than anticipated, revealing increasing helium shows. While we didn't find free gas, the helium concentrations in fluid samples were about 1%. This exploration has been valuable for refining our approach at Itumbula, where we'll target a significant fault associated with helium seeps.
TW: Why move the rig from Tai-3 to Itumbula, instead of fixing it on site?
LB: The decision was driven by mechanical issues with the rig, specifically the iron roughneck and hydraulics. These issues prevent further drilling at Tai-3. By casing and suspending Tai-3, we can move to Itumbula with the necessary equipment. This move is the most efficient use of our resources while addressing these technical challenges.
TW: How will the results from Tai-3 influence your work at Itumbula?
LB: The Tai-3 results are crucial for our strategy at Itumbula. We've shifted our drilling target based on these findings, focusing on a major fault linked to active helium seeps. The Tai-3 data has helped us identify potential sweet spots for helium in the region, refining our approach at Itumbula.
TW: Could you outline the timeline for the rig's relocation and subsequent operations?
LB: Rig dismantling at Tai-3 has already begun and is expected to take about a week. Following that, we'll focus on setting up and repairing the rig at Itumbula. We're sourcing parts and a new iron roughneck from the U.S., anticipating a 2-3 week timeline for equipment arrival and customs clearance.
TW: Finally, LB, how are you managing the rig repairs and sourcing the necessary parts?
LB: We're proactively addressing the setbacks. We've initiated the purchase and mobilization of a new iron roughneck from the U.S. and are ordering new hydraulic parts. We also have a specialized hydraulic engineer on-site working on these issues. We're doing everything possible to minimize downtime and will update the market as soon as we have a more concrete timeline.