Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said it has made significant progress at its Rukwa project in Tanzania, telling investors it is on track to begin its extended well test (EWT) of Itumbula West-1 (ITW-1) later this month.
The company-owned rig is already on-site and ready for third-party services to begin rigging up ahead of the spud.
Additionally, the helium exploration group has acquired well control equipment to complement the drilling rig. An experienced drill crew has been appointed for the EWT operations, and personnel mobilisation is underway. Essential long lead items required for the July spud are arriving at the site.
In preparation for the operations, the remobilisation of camp personnel and medical support is in progress.
In the update, Helium One said it has inked a contract with the global technology company SLB, formerly known as Schlumberger, for the provision of cementing, drilling and completion fluids services, and surface well test equipment and services. GeoLog International BV has been contracted for mudlogging services.
Laboratory results of helium samples from ITW-1, a fault-fracture helium play, have been consistent with measurements made by the onsite field PVT laboratory, indicating positive outcomes for the project.
The second phase of fieldwork for the environmental and social impact assessment (ESIA) study, required for the feasibility study, is ready to commence.
Both the feasibility study and subsurface modelling are underway and will be integrated with the EWT results in preparation for the mining licence application.
"The team has remained focused over the past few months to meet the timelines, including the ordering and delivery of long lead items, integrated subsurface modelling and engineering in order to form the basis of a feasibility study which will be required to apply for a Mining Licence to enable us to move into project development once the EWT is complete," said CEO Lorna Blaisse.
"We're very grateful to the Ministry of Minerals and the Mining Commission in Tanzania as well as the local communities in which we operate, for their ongoing support shown towards the company and the advancement of the southern Rukwa helium project."