Helium One Global Ltd (LON:HE1) appointed Mitchell Drilling Ltd as drilling contractor for the company's maiden three well exploration programme on its Rukwa project in Tanzania.
Mitchell Drilling will mobilise a drill rig from Tanzania which is expected to start work in mid-May.
"We are delighted to work with Mitchell Drilling as contractor for our maiden exploration drilling campaign,” said David Minchin, chief executive of Helium One. “Mitchell Drilling are highly experienced in gas exploration with all the technical knowledge and expertise required to deliver a safe and successful exploration campaign.”
"Mitchell Drilling have indicated that they are willing to take 50% of the contract value in shares, with a commitment to drill the 3rd hole and optional 4th hole for equity. Not only does this demonstrate Mitchell's commitment to the project, but also offers Helium One the potential to expand our exploration programme to include additional targets that may be identified from the current infill seismic campaign,” Minchin added.
The drill rig is larger than originally contracted, although at no additional cost, and is suitable for drilling 6¾" appraisal wells.
“This will allow the company to move directly from exploration into the appraisal phase, saving considerable time and money in demobilisation and remobilisation costs and allowing Helium One to continue the fast-track development of our globally strategic Rukwa helium project," said Minchin.
Scirocco Energy PLC (LON:SCIR) has a 4.3% shareholding in Helium One.