Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) provided a positive update on an extended test of its Itumbula West-1 well in Tanzania alongside a significant acquisition that broadens the group's geographic footprint - and, crucially, provides the prospect of near-term cash flow.
The exploration group successfully flowed helium in concentrations of up to 7.6% at an average of 786 barrels per day from Itumbula's faulted Karoo interval.
Over a five-day test period, ITW-1 averaged 5% helium. It was also observed that the concentration of hydrogen decreased as helium increased, yielding a maximum measured hydrogen concentration of 1.2%.
Chief executive Lorna Blaisse declared herself "very pleased" with the results, adding: "This is a globally unique helium play and it has taken a lot of hard work and collective effort across multiple disciplines to establish how this system works in the southern Rukwa Basin."
Going forward, the plan is to carry out a second extended well test, this time on the fractured basement horizon of the well.
In a second announcement, Helium One announced plans to acquire a 50% interest in ASX-listed Blue Star Helium's (ASX:BNL, OTC:BSNLF) Galactica-Pegasus asset in Colorado.
Located on a known helium fairway in Las Animas County, in the south of the US state, the project is host to discovery wells flowing up to 6% helium, close to infrastructure.
On a P50 estimate, Galactica-Pegasus is estimated to contain 675 million cubic feet of the inert gas at an average grade of 3%.
The full development programme envisages 15 wells alongside CO2 processing facilities, with work on six well planned for the fourth quarter to come on stream in the first half of next year.
To fund its ambitions, Helium One announced plans to raise £6.43 million at 1.09p a share.
CEO Blaisse said: "We are very pleased to have entered into this partnership with Blue Star that allows us to build an expanding global footprint in the helium sector at such a pivotal time.
"Our projects in Tanzania remain our primary focus, but this development opportunity enables the company to potentially secure near-term cash flow to aid with progressing our Tanzanian asset. We now have a portfolio of two potential near-term revenue projects in our portfolio."