Helium One is a unique opportunity on London’s AIM market
- Helium One is looking ahead to ‘very low cost’ new drilling later this year, David Minchin says
- Helium One rallies as its goes again in Tanzania
- Helium One’s latest gas shows are encouraging - broker
- Helium One’s David Minchin looks ahead to Phase 2 at Rukwa
Quick facts: Helium One Global Ltd
Price: 8.17 GBX
Market Cap: £50.29 m
About the company
Helium One Global Ltd has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.
The company's assets are located within the rift basins on the margin of the Tanzanian Craton.
Through Helium One's subsidiary companies Helium One (Gogota) Limited, Helium One (Stahamili) Limited and Helium One (Njozi) Limited, the company has secured 18 Prospecting Licences covering more than 4,512 km2 in three distinct project areas: the Rukwa, Balangida and Eyasi projects.
These are located near surface seeps with helium concentrations ranging up to 10.5% He by volume.
How it is doing
Minchin, in an interview following the results of the Tai-2 well, explained that the findings of the latest well have opened up and de-risked an opportunity to explore for and, subject to results, potentially develop shallow helium resources at Rukwa.
Lightweight drilling equipment could be on the ground and in motion before the end of the year, he added. First, the company is advancing plans for geophysical work to further de-risk and prepare for the winter programme.
At the same time, the deeper resource potential at Rukwa remains for future programmes to assess.
Chief executive David Minchin described the well as encouraging – as it encountered helium shows in a total of five intervals of the Karoo formation including all three pre-drill targets.
Insight: Helium One rallies as its goes again in Tanzania
Helium One shares rallied 25% in Thursday’s early deals after the company began drilling Tai-2 just over a week since the non-result of Tai-1 disappointed the firm’s retail investor base that has bought up the shares strongly in the months following its AIM market float in December.
What the brokers say
Helium One, in a statement on Monday, reported its latest notable helium gas show in the well above its primary target zone. Shows were seen from a depth of 552 metres to 561 metres and helium gas was observed visually at surface as bubbles in drilling mud.
“With further drilling still to take place at Tai-1, these are early days in the company’s drilling campaign. Early helium/gas shows are encouraging but obviously not conclusive at this stage,” analyst Sam Wahab said in a note.
What management says
Minchin talks viewers through what they believe is significant new data to move rapidly to Phase 2 exploration work at its 100% owned Rukwa Project in Tanzania.
He says results from Tai-1 have shown a prolific basin with helium shows identified at multiple levels from near surface to basement.
Meet the management
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