Helium One Global Ltd (LON:HE1) has identified evidence of helium in drilling mud whilst drilling its maiden exploration well, at the Rukwa project in Tanzania.
The company, in a statement, said it identified the helium shows in a shallow section of the Tai-1 well, from 70.5 metres, and added that micro-gas chromatograph showed helium concentrations up to 2.2% (22,084 parts per million).
Drilling continues towards the well’s primary targets, the base of Lake Bed formation, which is expected at a depth of around 400 metres.
"We are very excited to have identified the presence of helium in drilling mud from very shallow depth,” said chief executive David Minchin.
"With over 1000 metres still to drill at Tai-1 these are early days in our exploration drilling.
“Early helium shows give us a great deal of optimism for the remaining programme and we look forward to providing further updates as the project develops."
Minchin noted that a helium show is not evidence of commerciality and further evaluation is needed.
He added that gas concentrations encountered in mud logging are qualitative rather than quantitative and in-situ grade may be higher or lower than what is measured.
Drilling operations began on June 12. The company detailed that drilling began slowly through soft surface sediment until conductor casing was cemented at a depth of 55 metres, allowing 24 hour open hole drilling operations to start by June 19.
Tai-1 is the first well in a three-well programme. Each well is expected to take approximately one month to complete.