Helium One Global Ltd needs further funds to drill the Itumbula well once it has repaired its drill rig on the Rukwa licence in Tanzania.
COSTS
The company has faced setbacks from delays and component failures but aims to spud the new well in early January 2024.
A full cost analysis and budgeting exercise showed that “contingency funding” may be required following the “significant” additional costs and time delays while drilling Tai-3.
Helium One has received “a number of unsolicited approaches from potential investors” with whom it is advancing discussions while also assessing “other financing options”.
The company said it was confident of securing additional funding in the near future and has reduced personnel at the site to minimise costs during rig maintenance and repairs.
The replacement iron roughneck for the Epiroc Predator 220 drilling rig has been purchased and is currently mobilising from the United States.
Installation is expected to complete within three weeks, while repairs to the hydraulic and electrical maintenance are nearing completion.
“Over the past two weeks, a specialist hydraulics engineer has been reviewing the hydraulic system of the drilling rig and the company is confident that these issues have now been rectified,” said Helium One.
TARGET
Following the findings of an increase in concentration of helium in the fault and fractures close to Basement, the company has reviewed the geology of the Itumbula prospect.
“It is bounded by a large, deep seated western fault which extends into the Basement source rock,” added the company.
“It is this fault that is interpreted to be associated with the active surface helium seep 3km away.”
In a 30-day drill programme, Helium One will target the western bounding fault at Itumbula where it anticipates “significantly elevated” helium concentrations.
Civils work at the revised Itumbula well pad (West-A) are now complete and rig moved from Tai-3 to the Itumbula site.
Chief executive Lorna Blaisse said: “The team has worked exceptionally hard to find a resolution to the rig maintenance issues and we are delighted to now be well on the way to completing this, having sourced and mobilised the replacement parts to site so quickly.
“The well results from Tai-3 have enabled us to better understand the established helium system in the Rukwa basin and we look forward to being able to utilise these findings and drill the fault play at Itumbula as soon as possible.”