Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has reported sustained helium flow following the completion of extended well test (EWT) operations at the Itumbula West-1 (ITW-1) well in Tanzania.
The well flowed at a maximum rate of 2,701 barrels per day, equating to 834 standard cubic feet per day (scf/d) of helium – meanwhile, the company’s internal modelling suggests the rate could increase to 6,176 scf/d using artificial lift in future production phases.
The well yielded helium from two key intervals: the fractured Basement interval, which yielded an average of 5.5% helium, and the faulted Karoo Group, which produced 5.2% helium, both corrected for air. Maximum helium concentrations of 6.7% and 7.9% were recorded from the Basement and Karoo intervals, respectively.
"This is yet another huge milestone for the company and we are delighted to have successfully flowed helium, of significant concentration, to surface from both intervals during the EWT,” chief executive Lorna Blaisse said in a statement.
“The well was flowed naturally during the testing and based on the recorded flow rates, with the addition of artificial lift in the production phase this becomes a globally significant helium project in southern Rukwa.”
She added: “We overcame the challenges of securing a suitable drilling rig, successfully delivered a two-well exploration programme, successfully carried out a drill stem test on ITW-1 and then moved very quickly into an EWT to establish viability for this project.
“This is a significant achievement in a very short time frame, and I am delighted to now be moving this project forward and bringing it a step closer to development.”
The well results will be incorporated into a feasibility study for a larger development project, which may comprise ‘in the region of twenty to thirty’ wells.
Completing a feasibility study will feed into a Mining Licence application, required to establish a commercial production operation.
Helium One said it expects to make the application in the next two weeks.