Helium One Global Ltd has appointed Mitchell Drilling Ltd as drilling contractor for the first three-well exploration programme at its 100% owned Rukwa project in Tanzania.
FAST TRACK
The Australian operator, with more than 50 years’ experience and 115 rigs globally, will mobilise a drill rig already within Tanzania before starting work in mid-May.
The company has the option to take payment for the third hole as equity, which Helium One said demonstrated the operator’s commitment and confidence in the project.
A further option involves expanding the exploration programme with a fourth hole, also payable as equity, by including additional targets.
The rig can remain on site for follow-on appraisal drilling, saving costs and time in demobilisation and remobilisation of camp and equipment.
Helium One added that Mitchell had agreed to upgrade the drill rig and supply a larger rig at no additional cost.
The selected rig offers increased capacity, providing additional drilling power and can drill a 6¾” diameter hole to 1,200 metres, making it suitable for appraisal drilling following a discovery.
Helium One chief executive officer David Minchin added that the savings in time and money would fast track Rukwa’s development.
PROJECTS
Rukwa, in southwest Tanzania, comprises 15 prospecting licences covering some 3,590 km2.
The project hosts independently verified (SRK-2019) best-estimate, unrisked prospective recoverable helium resource (2U/P50) of 138bcf which the company believes is the “largest known primary helium resource in the world”.
A total 21 prospects and four leads have been identified based on high-resolution aerial gravity survey and 1,100 line kilometres of re-processed seismic data.
Helium concentrations up to 10.2% have been recorded in surface seeps, representing very high grade resource compared with typical values of 0.1-0.3% associated with hydrocarbon by-product production.
Two additional projects, Eyasi and Balangida, in north central Tanzania are at a less advanced stage but have “exceptional helium gas concentration at surface, and ideal geology for source, reservoir, trap and seal”.
Helium One has started work programmes including an airborne gravity survey to define prospective sub-surface structures.