Solo Oil PLC (LON:SOLO), soon to be renamed Scirocco Energy, has updated on its 12% owned associate Helium One which continues to advance projects in Tanzania.
Helium One has so far received renewal offers for 12 of 16 prospective licences requested of the Tanzanian authorities, and, it is awaiting decisions for the remaining four.
Solo noted that Helium One has a runway to explore and de-risk its prospect inventory through a drilling programme.
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Helium One has some 4,512 square kilometres of licences which, according to an October 2019 estimate, host 138bn cubic feet of un-risked helium resources (best estimate) – with the range pitched at 30bn to 521bn cubic feet.
These prospective resources are present across 21 discrete prospects which are mapped at multiple stratigraphic levels.
"Solo continues to maintain close dialogue with the Helium One team and are pleased to note the progress being made on multiple fronts, all of which bodes well for our legacy investment in this exciting opportunity,” said Tom Reynolds, Solo chief executive in a statement.
“In particular, the license renewals point to progress above surface, and the initial resource estimates emphasise the potential scale of the sub-surface opportunity. As the supply/demand imbalance for this important element continue to increase globally, Helium One remains well placed to generate a significant long-term return on our investment."
Helium One is actively assessing a listing on an international stock exchange in order to access capital to fund future activity, Solo noted.