Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) has begun a new phase of work at its southern Rukwa project in Tanzania as it readies for flow-rate testing that could determine the commercial potential of its discovery well.
The company said it had started operations ahead of installing an electrical submersible pump, or ESP, a device used to lift fluids to the surface and boost flow.
The equipment is due to arrive in Tanzania in mid to late December, with testing on the ITW-1 well to follow.
Crews and supporting kit are already on site, and Helium One has retrieved the completion string from ITW-1 using its own drilling rig.
The group has also signed a contract with wireline specialist Digital Borehole Surveying, which has begun logging the well. This logging work (essentially a detailed downhole scan) will be completed in the basement rock section before ESP operations begin.
Civil engineering work to manage water disposal during testing has been finished, along with road upgrades to prepare for the rainy season. The company has also received a Certificate of Incentives for mineral processing from Tanzania’s investment authority, TISEZA.
Lorna Blaisse, chief executive, said the next stage aimed to increase the well’s flow rate and, with it, the concentration of helium and the gas-to-water ratio.
She said the company believes the helium is sourced from the basement rock and deeper formations, and that higher production rates could help move its contingent resources toward reserves, a key milestone before any development plans.