Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) said the second half of 2021 was an active period for the helium explorer in which its flagship project was significantly de-risked.
In its interim results statement, it said the drilling carried out on the Tai prospect in the Rukwa Basin demonstrated a working helium system with good to excellent-quality reservoirs, thick sealing units, and helium gas shows at multiple prospective intervals.
The ongoing interpretation of the Phase II 2D seismic data has identified multiple areas of interest at both the Lake Bed and Karoo Group levels, the company added. The area surveyed was not previously covered by historic 2D seismic data, so newly identified closures will be added to the company's current prospect portfolio.
Helium One intends to complete additional work on these areas of interest to identify drill-ready prospects. This will be done through ongoing 2D seismic interpretation, integrating data from Airborne Gravity Gradiometry, Multispectral Satellite Spectroscopy, Electrical Resistance Tomography, and QEMSCAN data. This information will feed into risk weighting and volumetric analyses which will, in turn, inform prospect prioritisation ahead of its planned 2022 drilling campaign.
Helium One is in advanced discussions with a leading global drilling company for the provision of a containerised rig solution and remains committed to securing a suitable rig for drilling at Rukwa within the 2022 drilling season.
The company had a cash balance of US$9.7mln at the end of 2021.
The pre-revenue company posted a loss before tax of US$1.79mln for the six months to the end of December 2021 compared to a loss of US$3.53mln; the loss for the prior period included an impairment charge of US$2,277,196 that related to the impairment of assets acquired in the amalgamation with Attis Oil and Gas Limited.
“Our 2021 drilling campaign delivered 'proof of concept' by demonstrating the occurrence of subsurface helium within a working helium system. This gives us the confidence to push ahead with additional exploration and mobilise a conventional oil and gas rig for our 2022 campaign,” said David Minchin, the chief executive officer of Helium One.
"Our 2022 drilling campaign is supported by an integrated subsurface database pulling together information from 2D Seismic, multispectral satellite spectroscopy, electrical resistance tomography, airborne gravity gradiometry and QEMSCAN analysis to provide a powerful predictive tool for the ranking of prospects. The subsurface team have already identified multiple areas of interest for follow on work which are additional to our current prospect portfolio,” he added.