Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) shares rose 9% on Wednesday after an independent assessment confirmed the company’s southern Rukwa project in Tanzania has the potential to become a major helium development in Africa.
The Competent Person’s Report, carried out by reserves auditor Sproule ERCE, supported the explorer’s internal estimates and provided a clear picture of the project's scale.
The study identified mid-range (2C) contingent helium resources of 295.8 million standard cubic feet, rising to 1.35 billion in higher-case scenarios. Additional prospective resources across the wider licence area could reach over 3 billion standard cubic feet.
The evaluation is based on a phased development plan involving up to 66 wells. Initial production is pending full licence execution, with long-term output requiring a standard extension beyond the first 10 years.
"This is a material boost for the [Helium One] story and shows the material resources on offer in Tanzania," said Panmure Liberum in a note to clients.
"While new funding will be required, investors will be excited at the scale of the opportunity."