Noble Helium Ltd (ASX:NHE, OTC:NBHEF, FRA:GN1) accelerated preparations for its Kinambo helium drilling campaign during the June 2026 quarter after raising A$12 million, converting A$6.6 million of debt into equity and securing a rig for the North Rukwa Project in Tanzania.
The company ended the quarter with A$6.69 million in cash and is preparing for the Schramm T130 XD rig to mobilise in August 2026, following site preparation and optimisation of the first two Kinambo wells.
Kinambo drilling campaign takes shape
Noble Helium contracted the BoreXpert-operated rig to drill an initial two vertical wells at Kinambo, with additional wells contingent on the results.
Kinambo-1 has been repositioned following the completion of 3D seismic reprocessing, which significantly improved imaging of the deeper subsurface and helped the company better define the structure.
The well will target the crest of the shallower geological levels and is planned to reach a total depth of around 850 metres.
Kinambo-2 will be drilled about 400 metres to the northeast, where it will appraise any gas intersections from the first well before continuing to the deeper Galula Formation at a planned depth of approximately 1,750 metres.
The Galula and overlying Nsungwe formations are considered key targets because they form a known regional reservoir and seal pair. Noble Helium’s geological modelling indicates the deeper levels could host gas-phase helium sourced from helium-rich fluids migrating from basement rocks.
Gas compositions will be tested at the well sites and verified in laboratories. Depending on results, the wells may be cased and suspended for potential use as future producers.
Seismic work reduces drilling risk
Reprocessing of the Kinambo 3D seismic dataset delivered clearer imaging of the Nsungwe and Galula formations, which had previously been poorly resolved.
The enhanced data allowed Noble Helium to optimise its well locations, improve the targeting of structural crests and reduce operational drilling risks.
The company said the work had also improved its understanding of the potentially much larger eastern margin of the North Rukwa Project, where deeper helium targets including Chilichili and Gege could support a larger-scale development.
Forecast drilling costs are expected to increase following the change in location and greater planned depth of Kinambo-1. A detailed cost and drilling update is expected once the final program has been completed.
Capital raising supports exploration program
Noble Helium completed a two-tranche placement during the quarter, issuing about 413.8 million shares at A$0.029 each to raise A$12 million before costs.
The first tranche raised A$4 million, while the second delivered a further A$8 million following shareholder approval in May.
The company also converted A$6.603 million of convertible notes and secured loans into equity, issuing approximately 227.7 million shares and 69.6 million attaching options.
The recapitalisation materially reduced Noble Helium’s debt burden and provided funding for the Kinambo drilling campaign. Exploration and evaluation expenditure during the quarter totalled A$3.44 million.
Post-quarter, Jani Surjan was appointed chief financial officer following Owain Franks’ transition from the role. Surjan brings more than 30 years of finance experience, primarily in the oil and gas sector.
Path toward early production
Noble Helium is pursuing a staged development strategy at North Rukwa, beginning with the western margin, where it aims to establish a smaller-scale operation capable of generating cash flow.
Success at Kinambo could support early production planning while helping fund exploration of the eastern margin, which the company believes has potential to host materially larger helium accumulations.
Commercialisation options under consideration include introducing project partners, farming down part of Noble Helium’s wholly owned acreage, identifying equipment and service providers, and engaging potential offtake customers such as industrial gas companies and energy groups.