Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) told investors it has now sourced and purchased the necessary replacement part for its drill rig and it is expected on-site "within the next three weeks".
Additionally, Helium One noted that a specialist hydraulics engineer has been reviewing the rig and the company is confident that these issues have now been rectified.
"The team has worked exceptionally hard to find a resolution to the rig maintenance issues and we are delighted to now be well on the way to completing this, having sourced and mobilised the replacement parts to site so quickly,” chief executive Lorna Blaisse said in a statement.
“The rig upgrade and repairs will provide us with a better platform for future drilling activities."
In the meantime, operations have now switched to the intended Itumbula well site.
At Itumbula, the company plans to follow up what it described as a positive result from the Tai-3 well, which it highlighted as having an increased concentration of helium in the fault and fractures close to the basement.
With the Itumbala well, it anticipates that the target is “bounded by a large, deep seated western fault which extends into the basement source rock”, which is interpreted to be associated with the active surface helium seep some 3 kilometres away.
The company said it elected to target the western bounding fault at Itumbula as a primary target.
It expects to spud the well "in early January", with the drilling expected to be completed within 30 days.
Helium One added that it has done a re-costing of its drill plans in light of the changes and it now anticipates a need for additional funding.
It said it had already received a number of unsolicited approaches from potential investors and is now advancing these discussions while also assessing other financing options.
The company told investors it is confident of securing the additional funding in the near future and in doing so would avoid delay to the planned schedule for Itumbala.
“The well results from Tai-3 have enabled us to better understand the established helium system in the Rukwa Basin and we look forward to being able to utilise these findings and drill the fault play at Itumbula as soon as possible,” Blaisse said.
“The company is advancing discussions with potential investors while also assessing other financing options and is confident of securing additional funding in the near future."