In a recent interview with Proactive's Stephen Gunnion, Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF)'s chief executive Lorna Blaisse shared an exciting breakthrough at the Itumbula West-1 well in Tanzania.
This discovery of helium concentrations up to 4.7% has not only propelled the company into the spotlight but also boosted its share price.
Blaisse detailed the strategic drilling adjustments that led to this discovery, emphasising the project's uniqueness due to its pure helium, nitrogen, and hydrogen mix.
Additionally, the unexpected find of a 2.2% hydrogen concentration adds another dimension of commercial potential, especially in today's clean energy-seeking world. Let's dive into the specifics of this groundbreaking discovery and its implications.
Stephen Gunnion (SG): Can you tell us about the significance of the helium concentration found at the Itumbula West-1 well?
Lorna Blaisse (LB): Absolutely, it's a game-changer. We're looking at helium concentrations up to 4.7%, which positions us as a world-class helium source. Considering commercial viability in other projects starts at just 0.5%, and ours is pure helium without hydrocarbons, it's a monumental achievement. This could potentially make us one of the largest primary helium sources globally.
SG: How did Helium One approach drilling to ensure such a significant discovery?
LB: Our strategy was to adapt and target fault zones known for their helium-rich content. By changing our drilling locations based on initial encouraging results, we directly targeted these zones. This approach, coupled with our comprehensive logging suite and well-testing equipment, allowed us to tap into the high-quality reserves and confirm the high helium concentrations.
SG: The discovery also included hydrogen. How significant is this, and what does it mean for the project?
LB: Finding 2.2% hydrogen was an unexpected bonus, significantly above background levels. It fits our geological model and enhances the project's value, aligning with global demand for clean energy sources. Hydrogen, widely used as a carbon fuel replacement, presents significant commercial potential alongside our helium discovery.
SG: What are the next steps for Helium One in light of this discovery?
LB: It's still early days, but we're focused on fully evaluating the data and understanding how these gases behave. Our aim is to appraise and eventually commercialise the project, considering the global interest in helium and hydrogen as essential resources for various industries and clean energy solutions.