Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) is extending its seismic programme in Tanzania after seeing what’s described as encouraging early results at the Rukwa project.
The explorer had completed 94% of the planned 200 kilometre programme as of December 18, and, now intends to shoot an additional 20 kilometres to add extra data for “promising targets” in the previously unsurveyed Momba area.
Additionally, some 15 kilometres of 'high resolution' seismic will be shot, as an experimental line to assess the suitability of high resolution seismic “to resolve shallow structures and identify potential closures within the topmost 400 metres”, the company added.
Chief executive David Minchin, in a statement, said: "We are delighted with progress at our extended Phase Il 2D seismic campaign, which has provided high-quality data across the northern extensions of Tai and Itumbula structural highs that are believed to be acting as a charge focus for helium migration.
Helium One also told investors that it is well funded for current exploration activities and it is confident about its Phase II exploration campaign.
It is currently in talks with contractors for a conventional rig, for a drill programme commencing in the third quarter of 2022.
The company expects it will have some US$11.5mln of cash reserves, after payment of all due invoices related to Phase I drilling (excluding disputed invoices of US$239,429).
"We remain well financed and look forward to updating the market with additional information developed from the Phase II 2D seismic campaign once data has been processed and interpreted,” Minchin added.
“This information will feed into generating additional targets for our 2022 conventional drilling campaign."