Helium One Global Ltd is preparing to move beyond exploration following drill stem test results from the Itumbula West-1 well at Rukwa, Tanzania.
EVALUATION
The test measured a maximum flow rate of 0.5 million cubic feet per day containing 4.7% helium, without any artificial lift, from the factured Basement and faulted zone.
Flow rates in a pure helium play, without the presence of hydrocarbons and carbon dioxide, indicated the “uniqueness” of the project.
The company’s next move is an extended well test (EWT) on Itumbula West-1 during Q3 2024.
Resource estimates and subsurface modelling are also in progress as well as the start of talks with vendors on production facility engineering.
Hellum One said its Epiroc Predator 220 drilling rig is “hot stacked and in a state of operational readiness”, while it obtains additional spare parts.
With net cash of $8.7 million at 31 December, as revealed today in the company’s unaudited six-month results, the drilling of another well this year is under review.
Options include deepening Tai-3 to test the Basement play or drilling an appraisal well at Itumbula, following the start of the EWT.
Helium One’s chosen drilling programme and the planned EWT are subject to securing necessary long lead items.
The company said it had also aligned forward appraisal and development plans, including licensing requirements, following engagement with the Mining Commission of Tanzania.
Chief executive Lorna Blaisse added that the focus was now on appraising and evaluating the resource potential at Itumbula West-1.
“Whilst progressing the subsurface work, to better understand the resource estimates in a fractured Basement and fault play, we are planning the next phase of operations.
“An extended well test at site will enable us to confirm commercial flow rates and fluid composition, whilst continuing to plan for development and production scenarios in parallel.
“This is a highly exciting time for the company as we transition beyond exploration.”