Helium One Global Ltd (AIM:HE1) is looking ahead to a “very low cost” winter exploration programme at the Rukwa project, chief executive David Minchin has told Proactive.
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.
In the interview, Minchin meanwhile highlights the flexibility afforded by the company’s healthy cash position.
“We're well financed, we have got £10mln left in the in the bank. And that gives us a great deal of optionality, and the ability to advance the project very rapidly,” Minchin said.
“I'm looking to mobilise seismic imaging physical this season, so that we're able to get information from before the rain starts in mid-November, it's ambitious, but we try our best because I hate wasting time.”
Tai-2 well result
This morning, Helium One announced the completion of its two-well drill programme.
The Tai-2 well completing without identifying helium gas.
The two wells drilled in the campaign leave the explorer with a ‘proven’ working helium system, with beneficial packages of geological data, but not with material discoveries of helium.
Chief executive David Minchin highlighted that the Tai-2 well verified the potential for development of newly identified 'Shallow' traps within the Lake Bed Formation, which he says has capacity to open up low-cost exploration of near surface targets along with the deeper potential seen at the Rukwa project in Tanzania.
At the same time, chairman Ian Stalker added: “Work undertaken so far in 2021 has significantly de-risked the Rukwa Basin by demonstrating a working helium system.
"With our maiden exploration campaign clearly demonstrating prospectivty at multiple levels across the basin, the company can now move rapidly to develop a Phase 2 exploration programme that offers value for money.
“Using various geophysical techniques, we can quickly and cheaply advance both 'shallow' and 'deep' target types to de-risk our ability] to make a commercial discovery with Phase 2 drilling.”
Stalker noted that Helium One is well financed to deliver its Phase 2 plans, with the focus on cost-effective exploration.
Tai-2 was located just some 20 metres from the preceding Tai-1 well which encountered helium shows and multiple intervals that could not be tested due to poor well conditions. The second well was drilled from the same drill pad as Tai-1 and had the same exploration targets.
Prior to drilling Tai-2, the company said it had de-risked the project because of the findings of the first well which had confirmed a working helium system.