Stockbroker SP Angel described the latest results from Helium One Global Ltd’s (LON:HE1) Tai-1 well in Tanzania.
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.
“Nevertheless, the identification of helium gas shows in the Red Sandstone Group between 552m and 561m is another positive result as this zone was previously considered to be of low prospectivity.”
Helium One additionally noted that it would now sidetrack the well in order to complete the drill programme, after a drill pipe was lost into the hole at 561 metres.
It will restart drilling the sidetrack the well from a depth of 483 metres.