Helium One Global Ltd has taken legal advice and issued a rectification notice to its planned rig operator following continued delays to drilling operations at Rukwa in Tanzania.
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The company has had a series of issues over rigs since November 2022 when it had to change operator because of third-party legal complications.
In January 2023, the company’s second choice of rig became unavailable prompting a search for another.
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April’s non-binding letter of intent (LoI), jointly signed by Australian explorer Noble Helium and Helium One with Tunisian drilling firm Sofori, is now under review.
Helium One today said it had issued “a number of deadlines” but faced a “lack of operational and contractual progress”.
The company is considering alternative options, should Sofori fail to comply with the rectification notice, which would still enable drilling of the Tai-C well targeted for Q3 2023.
One option is the Drillmec HH102 Marriott rig from the UK, engaged by Noble Helium which has already withdrawn from the LoI because of the delays and expects the Marriott rig to arrive in late July.
Helium One chief executive officer Lorna Blaisse added: “Whilst frustrating that a definitive contract has not been signed, we continue to work with Sofori with a view to fulfilling their obligations under the LoI.
“In the meantime, we have commenced our civils work at site in order to ensure we can expedite drilling operations as soon as possible once we have a rig secured.”
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