Helium One Global Ltd (LON:HE1) chief executive David Minchin recently flew out to Tanzania amidst highly encouraging early indications from the explorer’s maiden well at the Rukwa project – in which evidence of helium was confirmed in drilling mud – and via social media he has now given investors key insights into this development.
Whilst the drilling of the Tai-1 well continues early indications point to an important ‘proof of concept’ breakthrough for the project, which was presented prior to drilling as potentially the largest new discovery of helium in the world.
The showing in the drilling mud represents a commercial grade of helium on its own. However, there’s a strong likelihood that dilution occurred as the gas was brought to the surface and that the actual in-situ grade will be significantly higher, though these are details that will need to be confirmed by future analysis.
In a short video, Minchin talks investors through the use of drilling mud and importantly the methods used to measure the helium content contained within the mud.
The social media post comes after Helium One yesterday published a company newsletter which it highlighted: “The presence of helium is constantly monitored during the drilling in order to identify shows from the mud logging. On the 19th of June, readings on the Micro Gas Chromatograph showed the presence of helium at a concentration of 22,084ppm (2.2%) He, indicating for the first time that Helium is trapped beneath the subsurface at Rukwa.
“While this is encouraging, there is still much work to be done as Tai-1 drills to test deeper targets in the Karoo Formation.”
“This is a transformational moment for the company as our maiden drill programme, five years in the planning, is now well underway.”
“Early evidence of helium has given us a great deal of optimism for the remaining targets.”