Helium One Global Ltd - Tanzania-focused helium explorer - Says drilling commenced on Saturday at the Itumbula West-1 well. In December, Helium One managed to raise £6.1 million from a placing and subscription of 2.42 billion new shares at 0.25 pence each to support drilling at Itumbula. The company says that drilling will target two fault zones which are thought to contain elevated concentrations of helium following a data-gathering project at the Tai-3 well in December. Drilling will also involve an ‘open hole well test’ to measure gas shows using Geolog’s mud logging services. Once these have been evaluated, Helium One may take further, downhole samples. The company expects the process from initial spud to the completion of mud logging and well testing to take around four to five weeks. A field pressure-volume-temperature specialist will be on site to measure helium gas samples, and Baker Hughes Co will provide service for wireline, fluids and cementing.
Chief Executive Officer Lorna Blaisse says: ‘This prospect demonstrates the potential to yield some positive results and, having the ability to both drill and test a fault play, provides us with every opportunity of giving it the best chance of a successful outcome. We look forward to making further announcements in due course as we drill, log and test the well’.
Current stock price: 0.23 pence each, down 7.5% in London on Monday morning.
12-month change: down 96%
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