Helium One Global the primary helium explorer in Tanzania, is pleased to provide the following update on future operations at Rukwa.
Highlights
· Drill stem test ("DST") results carried out on the Itumbula West-1 well calculate a minimum flow rate of 0.5 million cubic feet per day ("mmscfd") containing 4.7% helium
· Extended well test ("EWT") planned on Itumbula West-1 well in Q3 2024
· Resource estimates and subsurface modelling being progressed
· Early engagement with vendors regarding production facility engineering as the Company's focus transitions towards development and production
· Company-owned Epiroc Predator 220 drilling rig is currently hot stacked and remains in a state of operational readiness
Details
The DST results from Itumbula West-1 well have demonstrated that the well has flowed the equivalent of 0.5 mmscfd of 4.7% helium (without any artificial lift) from the fractured Basement and faulted zone. These flow rates in a pure helium play, without the presence of hydrocarbons and carbon dioxide, indicate the uniqueness of this helium project.
The Company is currently advancing its subsurface modelling and updating its internal resource estimates in order to determine the best path towards the commercialisation of Itumbula.
Helium One is currently working towards an EWT in Q3 2024 on Itumbula West-1 in order to confirm flow rates and the fluid composition. Conditional upon these results, the Company will then be in a position to advance discussions with off-takers and industry partners and will help determine the design of any future production facility. The Company has already approached vendors regarding such facilities and will be working closely with them over the coming months.
The Company is also reviewing its options to drill another well this year, following the commencement of the EWT. These options include the deepening of Tai-3 to test the Basement play or the drilling of an appraisal well at Itumbula. The outcome of this, as well as the planned EWT, is subject to securing the necessary long lead items required for such operations.
The Company-owned Epiroc Predator 220 drilling rig is currently hot stacked at the Itumbula West-1 wellsite. Additional spare parts are being obtained while the rig remains in a state of operational readiness.
Recent positive engagement with the Mining Commission of Tanzania has enabled the Company to align on forward appraisal and development plans, including associated licensing requirements. The Company looks forward to making further updates in due course.
Lorna Blaisse, Chief Executive Officer, commented:
"The Company's focus is 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. I look forward to providing further updates as we progress our plans in due course."