Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) this week moved closer to a key milestone in Tanzania, and updated on its progress in Colorado.
It announced on Monday the offer of a mining license offer letter in Tanzania – the first in the country for helium – and when confirmed, it will enable further appraisal and development of the Itumbula project.
The company is reviewing the regulatory terms, including forming a new entity with the Tanzanian government, and emphasized the importance of progressing quickly.
Helium One also reported progress on its US drilling activities.
Chief executive Lorna Blaisse joined the Proactive Studio.
Proactive: Lorna, very good to speak with you. There’s lots of news from Helium One. Why don’t we start with the mining license offer letter—what does this mean?
Lorna Blaisse: Yes, good afternoon, Stephen. First of all, we're very pleased to have received the offer letter for the mining license.
This is the first of its kind in Tanzania—not just for helium, but also in terms of its size. At 480 km², it’s significantly larger than a standard mining license for a mineral commodity.
We’re pleased that this offer has come through, as it allows us to further appraise and evaluate the extensive subsurface faulted play following our important discovery last year at Itumbula.
This will enable us to assess the full scale of project development.
Proactive: Can you elaborate on any of the terms of the offer?
Lorna Blaisse: We're currently reviewing the details, particularly the regulatory framework underpinning the license.
It involves forming a new company in partnership with the Tanzanian government, a shareholder agreement, and various legal documents.
We’re studying it carefully to ensure we understand all conditions, but we also recognize the need to move forward in a timely manner.
Proactive: Will you release the feasibility study data that went into the application?
Lorna Blaisse: The feasibility study remains under a confidentiality agreement with the Tanzanian government.
However, we understand the need for an independent third-party assessment of the resource estimates.
We are addressing this with a view to providing a Competent Person’s Report (CPR) in due course, which will be made publicly available at the right time.
Proactive: Will you now look for strategic partnerships?
Lorna Blaisse: We remain open to reviewing feasible options.
We’ve done this on our own so far with success, but we will keep an open mind as we move into the next phase.
Proactive: Moving on to the Jackson-31 well in Colorado—can you explain what it means that the well flowed naturally and that free gas was confirmed? Why is this good news?
Lorna Blaisse: It’s an important distinction. The geological play in Colorado is very different from what we have in Tanzania.
The Jackson-31 well has confirmed free gas, already proven in offset wells, including the first development well that Blue Star Helium drilled at State-16.
The wireline logs confirm this, and there’s no association with water, unlike in southern Rukwa.
The well has flowed free gas to the surface. I was on-site when this happened during the early testing phase.
Samples have now been sent to the lab for helium and CO2 analysis. This first development well in the campaign has free-flowing gas from the targeted reservoir, which wasn’t expected.
We’re now preparing to move onto the next development well, Jackson-4, later this week.
Proactive: What’s next for Jackson-31?
Lorna Blaisse: The rig is now moving to Jackson-4, but Jackson-31 has been configured for further well testing.
Over the next week or so, we’ll conduct rigorous testing to measure flow rates and obtain additional gas samples.
We currently anticipate that Jackson-31 will become a production well, tied into the long-term production facilities.
Proactive: When will you drill the next wells?
Lorna Blaisse: Jackson-4 is due to spud very soon—the rig is mobilizing as we speak. These wells are relatively shallow and can be drilled much quicker than those in southern Rukwa.
We plan to drill five wells in this initial development phase, back-to-back over the coming weeks, so there will be plenty of news flow from the U.S.
Proactive: What does this mean for the production timeline?
Lorna Blaisse: Blue Star is still on track for production before the end of the first half of this year.
The IACX Energy processing plant has already been designed for this project, and ongoing engineering work will continue as new development wells come online.
Proactive: What’s next for Helium One?
Lorna Blaisse: What we’ve achieved over the last 18 months has been impressive.
We’ve purchased a drilling rig, drilled two wells in Tanzania, made a helium discovery, conducted a successful extended well test, completed a feasibility study, filed a mining license application, and successfully diversified into the U.S. for a near-term helium-producing asset.
At the moment, we have a lot to focus on, but as always, we remain opportunistic.
Proactive: I hope you’ll keep us updated on both projects. Lorna, thank you for the update.