Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) CEO Lorna Blaisse talked with Proactive about the comprehensive update on its Rukwa project in Tanzania. The conversation focused on the extended well test at Itumbula West-1, where Lorna shared details about the upcoming operations.
Proactive: Hello. You're watching Proactive London. I'm joined by Lorna Blaisse, the CEO of Helium One Global. Lorna, good to speak with you today. You’ve announced a comprehensive update on your Rukwa project in Tanzania. And there's a lot to digest. Could we start with the extended well test at Itumbula West-1? Where are you commencing that?
Lorna Blaisse: Morning, Stephen. Yes, a lot has been happening. There is an awful lot going on, and we're about to move into a very exciting phase for the company. So in terms of the extended well test itself, we've already started receiving equipment on site. We plan to start those operations in a few weeks' time. We'll have a couple of weeks of drilling operations to deepen the well further into the basement, and then we'll run the completion. After that, we can start flowing well. This phase itself is likely to take several weeks.
Proactive: And what are you looking to achieve from this, Lorna?
Lorna Blaisse: Good question. I think, to put it into context, the DST (drill stem test) that we did on phase two earlier this year at Itumbula West-1 gave a very small snapshot of reservoir conditions. What the extended well test will do is to give a much more detailed evaluation of the downhole conditions, as it is performed over a much longer period of time.
We'll be testing multiple zones at Itumbula West-1 from both the fracture basement, which is where the well successfully flowed at 4.7% to surface during the DST, and also the faulted Karoo interval.
The first phase of the well testing will involve running a smaller diameter tubing stream. This will allow us to control the different zones that will flow. Once that tubing string is in place, we can then bring the fractured basement and temporarily shut off this interval so that we can test the secondary zone in the faulted Karoo.
We will also complement this operation with something we refer to as a production logging tool, which will be run on a thick line. This will give greater clarity on the producing intervals and ultimately flow performance.
Proactive: You also mentioned the lab results, Lorna. How good were they? And have they given you increased confidence?
Lorna Blaisse: Yes. So, approaching phase two last year, we were always of the view that we needed to have onsite ability to do real-time lab analysis. In this part of the world, it takes time to export gas samples out of the country. So for us, it was very important to get that secondary verification of what the measurements while drilling were telling us. We mobilized and built a PVT laboratory on-site specifically for that task.
However, we sent a small subset of samples off to a leading noble gas laboratory outside of Tanzania and Africa. The results have come back and confirmed to us that the onsite measurements we were doing were giving very similar readings to those measured in the lab. This gives us confidence that the field measurements are consistently accurate.
There were some indications of air contamination, which is quite common when sampling for helium, so the helium concentration could be slightly higher than what we've already measured. However, with the extended well test coming up, the results of that will supersede and give us a much more detailed data set going forward.
Proactive: You're also testing a couple of new fractures. What's the purpose of this? And what are you hoping to find, Lorna?
Lorna Blaisse: Yes, we are. That comes back to testing the fracture basement play. When we flowed the 4.7% helium to surface during the DST, we knew that came from the fracture basement target itself. That is where we believe the sweet spot is for that all-important release of helium.
So prior to commencing, we will actually be deepening the well slightly to further drill into that fracture basement play, which will ultimately give us a greater opportunity to intersect as many of those basement fractures as possible. That's where we believe the helium is flowing from. Geologically, it's a complex network of fulcrum fractures down there, but they are very likely connected to one another, enabling the helium to migrate up from the deep-seated source.
Proactive: So, everything's ready to go now, then?
Lorna Blaisse: It is. We're very close now. A huge amount of equipment is coming in from inside and outside of Africa. This is a remote location and a very large logistical project, as we've experienced in the past. We've got equipment already starting to arrive at the site, and that will continue over the coming days and weeks, along with the remobilisation of crew and personnel.
The team has been working exceptionally hard to ensure another timely delivery of this phase of the project, as well as tracking the demands of working on the feasibility study alongside so that once we've completed the EWT, we can integrate the results as quickly as possible into that feasibility study and subsurface model. This will allow us to progress with the application for a mining license through the government and move the project forward. It's a very busy but exciting stage.
Proactive: And speaking of the government, you've been meeting recently with various ministers. How is your relationship in-country with them? How's the support you're getting from them?
Lorna Blaisse: Yes, definitely. Like any new sector, this is a very important piece of any project. Helium very much takes that box of being a new sector. I was in Tanzania last week and met with members of the Ministry of Minerals, the Mining Commission in Dodoma, and other stakeholders to keep them informed of the project.
We discussed developments with the subsurface work commencing on the feasibility study, the environmental and social impact assessment underway in the field, and our view on submitting the mining license application after EWT. They are very supportive, which we're very grateful for. They're aware of what we're doing, very engaged with us, and ready for the next phase of the project.
Proactive: So, are you happy with where you're at at the moment, Lorna?
Lorna Blaisse: Absolutely. It's been a huge amount of effort to get to this point. There are a lot of moving parts behind the scenes, but we're delighted to be poised at this stage to commence extended well testing in a matter of weeks.