Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) shares jumped around 20% in Monday’s dealing, nevertheless, one City broker repeated a ‘Buy’ recommendation that still sees the small-cap share multiples higher.
Priced at 1.08p, Helium One was up around 18% by the mid-afternoon trade after a pair of positive news announcements this morning.
The AIM-quoted firm revealed that it’s been offered an extraction lease in Tanzania – which promises to unlock a commercial development once the i’s are dotted and the t’s are crossed – separately, in Colorado, initial well results point to success.
It received an offer letter from the Mining Commission in Tanzania, for a Mining Licence (ML) covering its southern Rukwa Helium Project – an area spanning approximately 480 square kilometres - and, now, the company is reviewing the offer and its terms.
“This is a positive sign and we would anticipate that agreement on the terms of the Mining Licence and formal award should be received in the near term,” Panmure Liberum analyst Ashley Kelty said in a note.
“The updates today are very encouraging and HE1H continues to look to move towards maiden production in 1H25, with substantial upside on offer from the development of the resources in Tanzania.”
Panmure Liberum’s ‘Buy’ recommendation pitches a price target of some 3.6p per share -
Also this morning, the company announced that the Jackson-31 well in Colorado was completed, flowing gas. It encountered a 57-foot gas-saturated section in the Upper Lyons Sandstone Formation.
It was drilled down to a total depth of 1,210 feet, and, confirmed free gas in the Upper Lyons Sandstone Formation. The well flowed gas naturally, indicating strong reservoir communication.
The wellhead configuration is currently being finalised, and further testing will follow.