Tag: HE1

Helium One Global Limited (LON:HE1), the primary helium explorer, has announced its unaudited condensed and consolidated results for the six months ended 31 December 2022, as well as provide an update on the Company’s progress on its projects in Tanzania post the half year end. 

Highlights 

·      Successfully raised £9.9 million ($12.3 million) in December to fund the Company through the 2023 Drilling programme in the Rukwa Basin, anticipated in 3Q 2023

·     Relinquishment of 1,548 km² of non-prospective licensed areas across the Rukwa Basin saving the Company $309,600 per annum

·      Completion of analysis of Falcon Airborne Gravity Gradiometry (“AGG”) and aero-magnetic data over the Balangida Basin; developing a greater understanding of rift geometry, basin evolution and subsurface structure for targeted exploration

·        Net cash balance as at 31 December 2022 of $13.7 million

Post the period end

·        Appointment of new CEO, Lorna Blaisse

·        Entered a co-operation agreement with Noble Helium (ASX: NHE) whereby both companies have agreed to cooperate in sourcing and securing a suitable drilling rig, associated services and logistics.

·       Development of further helium potential resource targets following the integration of the gravity-magnetic 3D inversion study over the Eyasi Rift Basin area, following the success of the Balangida work in collaboration with Getech

·       Commencement of Environmental and Social Impact Assessment in the Eyasi region, ahead of potential data acquisition in Q4 2023/Q1 2024

Ian Stalker, Chairman of Helium One commented: 

“Securing a rig for the planned campaign at Rukwa is the Company’s number one priority and the team is working tirelessly to ensure this happens swiftly.  The exploration work that has been carried out to date has significantly de-risked the Rukwa project and we are excited about the drilling programme which we believe has the potential to prove up what we believe to be a world class helium province. 

“We look forward to providing further updates as our programme progresses.”

CEO’s Statement 

The six-months ended 31 December 2022 was a frustrating period for the Company.  On the operational side, Helium One was proactively pursuing a number of rig options which, unfortunately, culminated in a series of setbacks due to contractual issues around rig export and operators extending drilling programmes, preventing us from securing our preferred rig of choice. This has led to significant setbacks for the Company, and, in a dynamic rig market, it is critical we focus our efforts on securing a rig that meets our technical requirements, whilst also being within our budget. The Company remains focused on identifying a rig to enable us to fulfil our 2023 Drilling programme and is currently actively negotiating a rig contract.  

The co-operation Agreement with Noble Helium (ASX: NHE) enables both companies to cooperate in sourcing and securing a suitable drilling rig, associated services and logistics. The agreement will ensure that the Company’s outlined timings remain unchanged, keeping us on track for commencement of drilling in Q3.

In September, the Company renewed a number of its Prospecting Licences (“PLs”) across Rukwa, Eyasi and Balangida. A strategic approach was adopted to review the PLs, with the Company relinquishing 1,548 km² across the Rukwa Rift area that were considered to have little to no prospectivity and/or sub-optimally located for cost conscious exploration. As a result, the Company will realise an annual cost saving in licensing fees of $309,600. 

In the last quarter, the subsurface team undertook an extensive study with Getech, leading experts in gravity and magnetics data interpretation, to better evaluate the structural geometries of the Eyasi and Balangida Rift Basins. The gravity-magnetic 3D inversion study has included the development of an advanced data analytical workflow, integrating proprietary high-resolution Falcon AGG data with regional aero-magnetic, land based gravity and radiometric data for improved model calibration. The results of this study have proved to be highly valuable in gaining a greater understanding of depth to basement (sediment thickness) within the basins as well as being used to identify structural geometries as potential exploration targets for further evaluation.

The completed study has generated a detailed series of maps, increasing our knowledge of depth to basement and sediment thickness across the Balangida and Eyasi Rift Basin areas, and enabled greater understanding of the Rift geometry, basin evolution and subsurface structure to aid the development of our ongoing exploration programme. Conclusions of this work will allow the technical team to draft a forward work programme for both basins, with a view to acquiring 2D seismic late 2023/early 2024.

Work has also commenced on the environmental application process (Environmental and Social Impact Assessment or “ESIA”) on the Eyasi region with a community engagement effort on the ground through  our stakeholders, EcoServices.  The ESIA process, which will take six to nine months to complete, will enable the Company to undertake seismic acquisition in the region.

As a result of recent executive changes, Kai Gruschwitz has been appointed Technical Director (non Board) having being a Consultant Geophysicist on the Rukwa project for the past nine months. Kai brings a wealth of technical knowledge and is a proven oil and gas finder with over 25 years’ experience in the industry.  In conjunction with the Board, the team are focused and committed to deliver a successful drilling campaign for Helium One in 2023.

As is to be expected with an exploration company, for the six-month period ended 31 December 2022 the Group reported an unaudited pre-tax loss of $1,221,998 (six months ended 31 December 2021, unaudited: $1,917,541). The Company continues to be well funded with a cash balance of $13.7 million as at 31 December 2022, following the completion of the successful £9.9 million fundraise in December.

The remainder of the financial year will continue to be a busy period for the Company.  Notwithstanding the challenges the Company has faced, we remain confident in the project and are committed to securing a rig and remaining on track for a Q3 spud later this year.

I would like to take this opportunity to thank all our stakeholders for their continued support and look forward to providing further updates as we look to secure a rig and deliver our drilling campaign.

Lorna Blaisse

CEO

24 March 2023 

Helium One Global Ltd (LON:HE1), the primary helium explorer in Tanzania, has announced that at today’s AGM, Lorna Blaisse, the Company’s new Chief Executive Officer, will give an updated presentation to the meeting, a copy of which will be uploaded to the Company’s website.

The Company has updated the operational outlook using information which is current as at today’s date, based on ongoing negotiations with rig providers. This outlook indicates a planned drilling programme at Rukwa commencing in Q3 of this year.

Helium One Global Ltd (LON:HE1), the primary helium explorer in Tanzania, has announced that David Minchin will be stepping down as CEO and from the Board of Helium One, with immediate effect, to pursue other challenges.

The Board is pleased to announce the appointment of Lorna Blaisse, currently Principal Geologist at Helium One, as CEO of the Company with immediate effect and, following completion of the required AIM regulatory due diligence, it is intended that Lorna be appointed as a Director of the Company.

Lorna is a skilled Exploration Geologist with over 17 years’ experience in exploration and appraisal of oil and gas projects across Africa.  She has direct experience of rift basin geology, having worked in the Lake Albert Rift Basin in Uganda, the Termit Basin in Chad as well as operational experience managing and delivering successful exploration campaigns in Central and East Africa. 

David Minchin has agreed to remain available to the Company in the short term to ensure an orderly hand over to Lorna.

Ian Stalker, Non-Executive Chairman, commented:

 “On behalf of the Board I would like to thank David Minchin for his dedicated service over the last two and a half years.  David has grown and developed the Company during his tenure as CEO, increasing our operational capability and expanding our geological knowledge of the Tanzanian helium systems.  He leaves us in a strong position – fully financed and with an excellent management team in place – to execute our 2023 drilling campaign and to further grow the Company to become a strategic supplier of helium to a constrained market. We wish David all the best of luck in his future endeavours.”

“I would also like to welcome Lorna as CEO.  She has extensive expertise at successfully delivering oil and gas exploration campaigns and, having been with the company for almost 2 years, an in depth understanding and knowledge of our projects which will greatly assist her and the team in delivering a successful drilling programme in 2023.”

David Minchin, departing Chief Executive Officer, commented:

“With Helium One fully funded for drilling at Rukwa and rig contract negotiations ongoing, it is an appropriate time for new leadership to come to the Company and take ownership of the 2023 drilling campaign.  Although disappointed that I will not be a part of the team that ultimately delivers this, I am happy that I leave the Company in a strong position.  Helium One has an exceptional management team and Board in place and is fully funded to move forward and deliver its strategy. 

“I would like to thank all shareholders for their continued support during my time at Helium One, and express my gratitude towards all our employees, the Tanzanian government ministries as well as the local communities at Rukwa, Eyasi and Balangida – Asante.

“I wish the Company every success in its upcoming campaign.”

Lorna Blaisse, Helium One incoming Chief Executive Officer, commented:

“I am delighted to have been given the opportunity to take leadership of Helium One at such a crucial time for the Company. This is a strategically important phase for Helium One, but I have every confidence in the team and know they will adapt quickly to this change and remain focused on delivering a safe and successful drilling campaign this year, whilst also continuing to develop our wider helium portfolio. I look forward to continuing the Company’s growth, whilst maintaining clear communication with our shareholders, and unlocking the full potential of the Rukwa project.”

Helium is a non-renewable resource, meaning that it is not replenished on a human timescale. The majority of the world’s helium is produced in the United States, Russia, and Algeria. The largest reserves of helium are found in natural gas deposits, and it is extracted during the production of natural gas. The global demand for helium has been increasing in recent years due to its use in a variety of applications such as MRI machines, semiconductor manufacturing, and as a coolant in nuclear reactors. However, the global supply of helium is limited and it is expected that supplies will become increasingly constrained in the future. Add to this the Russia-Ukraine war and the supply deficit is only worsened.

Helium One Global (LON:HE1), a London-based company, believes Tanzania can become a major supplier of helium, a colorless gas that is used for a range of high-tech applications such as MRI scans, satellite instruments, semiconductor manufacturing, fiber-optic cables, rocket launches, and assisted breathing in hospitals. CEO David Minchin says if hospitals run out of helium, Covid-19 death rates would increase, as there are no suitable substitutes for the element. He calls it “one of the unsung commodities of the hi-tech world in which we live.”

The US built up a strategic reserve of helium during the Cold War, which it gradually sold down in recent decades, limiting the need for new resources to be discovered. However, the US Federal Helium Reserve stopped public sales in 2022, and the supply shock has been compounded by war in Ukraine. A gas processing plant at Amur, near the Russia-China border, used to supply about a third of the world’s helium, but a series of accidents at the plant in late 2021 and 2022 took it out of action, and US sanctions on Russia have stopped it from being brought back online. The CEO of South African helium and LNG producer Renergen has said that Amur may not be running again until at least 2026.

Helium One has licenses across three separate areas in Tanzania, Rukwa, Balangida, and Eyasi, all of which are close to the needed infrastructure. The flagship Rukwa project covers 1,900 square km in the southwest of the country. The potential helium resource, Minchin says, is between 50 times and 200 times higher grade than current global production, and can be exploited without the greenhouse gases normally associated with helium. The company raised $12 million in December in an oversubscribed sale of new shares in London. Minchin says Rukwa could be in production for decades, providing long-term employment in Tanzania and serving as an engine of regional growth.

However, the company’s drilling timetable has been disrupted. Helium One was due to get use of a rig from the Exalo drilling contractor for use at Rukwa early this year, with drilling due to start in the first quarter. On January 3, Helium One said in a regulatory statement that the current operator of the rig has amended its contract with Exalo to keep hold of the rig for up to 12 months, meaning a replacement needs to be found. Minchin is confident that the news is no more than a “bump in the road” and that it will be “relatively easy” to find another rig.

The rig market in 2022 was tight due to the Russia-Ukraine war which pushed up oil and gas prices and meant that a range of potential exploration projects which were marginally profitable suddenly became much more appealing. A lot of the work on those marginal projects has now been done, meaning that the tightness in the rig market has eased, Minchin says. “There is more availability now than last year.” It’s important to avoid a rushed decision on the replacement rig, and the company will still be drilling in the course of 2023, he concludes.

Helium One Global (LON:HE1), the primary helium explorer, has confirmed that the Company’s Annual General Meeting will be held at 3:00 p.m. GMT on 15 February 2023 at the offices of Hill Dickinson LLP at 8th Floor, The Broadgate Tower, 20 Primrose Street, London, EC2A 2EW. The Notice of AGM details a number of resolutions proposed by the Company’s Board of Directors, a proxy form or form of instruction for you to complete and explanatory notes which contain information on the resolutions to be proposed at the AGM have been posted to Shareholders today.

Attendance and voting

Shareholders are able to attend the AGM in person or alternatively, Shareholders may remotely attend and submit written questions by webinar which will be recorded and be made available on the Company’s website.

The directors will provide a business update to shareholders and answer relevant questions at the beginning of the AGM, after which the formal business as set out in the Notice of AGM will be considered.

Shareholders are strongly encouraged to submit a proxy vote in advance of the AGM.  You are strongly encouraged to use your right to appoint the Chair of the AGM as your proxy to attend the meeting and vote on your behalf. Please vote online at www.investorcentre.co.uk/eproxy or by filling in the Form of Proxy or the Form of Instruction sent with this Notice and returning it by post to the Company’s Registrars as soon as possible at c/o The Pavilions, Bridgwater Road, Bristol, BS99 6ZY. The Registrars must   receive your Form of Proxy by 3.00 p.m. on 13 February 2023 and your Form of Instruction by 3.00 p.m. on 10 March 2023. For instructions on proxy voting, please see the notes to the Notice of AGM for information.

Please note that shareholders will not be able to vote online at the AGM via the AGM Webinar and are therefore encouraged to submit their votes via proxy.

The results will be announced via a Regulatory News Service and on the Company’s website as soon as practicable following the AGM.

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences totalling more than 2,964km² across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.

The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. The assets lie near surface seeps with helium concentrations ranging up to 10.6% He by volume. All Helium One’s licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

The Company’s flagship Rukwa Project is located within the Rukwa Rift Basin covering 1,900km² in south-west Tanzania.  The project is considered to be an advanced exploration project with leads and prospects defined by a subsurface database including multispectral satellite spectroscopy, airborne gravity gradiometry, 2D seismic data, and QEMSCAN analysis. The Rukwa Project has been de-risked by the 2021 drilling campaign, which identified reservoir and seal with multiple prospective intervals from basin to near surface within a working helium system.

Helium One Global (LON:HE1), the primary helium explorer in Tanzania, has announced that, following the announcement on 13 December 2022 regarding the launch of a proposed placing and a direct subscription, the Company has made the decision, as a result of significant investor demand, to increase the Fundraise to a total of approximately £9.9 million (approximately US$12.3 million). The additional funds will provide the Company with greater working capital flexibility during and after the proposed drilling programme in Q1 2023.

Helium One Global and the Joint Bookrunners are completing the final administrative elements of the Fundraise and the Company will release an announcement in due course confirming the final details of the Fundraise.   

The company, holds prospecting licences totalling 2,966km² across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.

The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. The assets lie near surface seeps with helium concentrations ranging up to 10.6% He by volume. All Helium One’s licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

The Company’s flagship Rukwa Project is located within the Rukwa Rift Basin covering 1,900km² in south-west Tanzania. The project is considered to be an advanced exploration project with leads and prospects defined by a subsurface database including multispectral satellite spectroscopy, airborne gravity gradiometry, 2D seismic data, and QEMSCAN analysis. The Rukwa Project has been de-risked by the 2021 drilling campaign, which identified reservoir and seal with multiple prospective intervals from basin to near surface within a working helium system.

Helium One is traded on the AIM market of the London Stock Exchange with the ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

Helium One Global Ltd (LON:HE1), the primary helium explorer in Tanzania, has announced a proposed capital raising of a minimum £7.0 million (approximately US$8.7 million), before expenses, by way of a placing and a direct subscription at a price of 5.0 pence per ordinary share.

The Placing is being conducted through an accelerated bookbuild process to be undertaken by Liberum Capital Limited, and Peterhouse Capital Limited acting as Joint Bookrunners. The Bookbuild will commence immediately following the release of this announcement. The final number of shares to be issued pursuant to the Fundraise will be determined by the Bookbuild and announced upon closing of the Bookbuild.

Summary

·      Proposed Placing and Subscription to raise gross proceeds of a minimum £7.0 million (approximately US$8.7 million) (before expenses) at the Issue Price.

·      The Placing will be made to certain existing shareholders and other institutional investors.

·      All of the directors and some management of the Company have indicated an intention to participate in the Subscription up to an aggregate amount of approximately £100k (approximately US$124k).

·      Issue Price of 5.0 pence per New Ordinary Share represents a discount of 26 per cent. to the closing mid-market price of the Company’s existing ordinary shares on 12 December 2022, the last practicable date prior to this announcement.

·      The net proceeds of the Fundraise will be used for a targeted single well exploration drilling programme of the Tai prospect in the Rukwa Basin.

·      The timing for the close of the Bookbuild and allocation of the Placing Shares shall be at the discretion of the Joint Bookrunners, in consultation with the Company. For the avoidance of doubt, the Fundraise is not underwritten.

The Appendix to this announcement (which forms part of this announcement) contains the detailed terms and conditions of the Placing. Members of the public are not eligible to take part in the Placing.

David Minchin, Chief Executive Officer, commented:

“Helium One are poised for growth as we prepare to commence Phase II exploration drilling at Tai.  With a drilling rig and related services under MOU for mobilisation in Q1 2023, Helium One offers a fantastic opportunity for investors to gain exposure to the helium sector with a high-grade, exploration prospect ready for drilling.

“Capital raised through the proposed fundraising will allow the Company to progress its Phase II exploration drilling.  A discovery made at Tai will help to unlock the value of our entire portfolio and help grow the Company into a strategic player in developing a new supply in this high-value, high-demand, high-tech commodity.”

Helium One (LON:HE1), the primary helium Company with exploration licences in Tanzania has announced the Company’s audited results for the year ended 30 June 2022.

Within the period:

·     Completion of Maiden drilling programme, delivering a proof of concept and enabling the Company to de-risk the Rukwa Basin

·   Working helium system demonstrated at Tai-1/-1A with the presence of good quality reservoirs, thick sealing units and multiple helium shows

·   Commencement of Phase II exploration programme, providing the Company with the best information available to inform the planning and targeting for the Phase II drilling campaign

·     Significantly strengthened management team

·  Licence renewals and licence relinquishments concluded, enabling the Company to focus on more prospective remaining acreage, as well as saving capital

·     Signed Memorandum of Understanding with Exalo Drilling S.A. for the supply of a drilling rig

·     Letter of Intent with Baker Hughes for the supply of integrated wellsite services

·     Phase II drilling programme planned to commence Q1 2023

Ian Stalker, Chairman, commented:

“This was a significant year for the Company as we completed our first two exploration wells in Rukwa and significantly de-risked the Rukwa project by identifying a working helium system at our Tai prospect. As Phase II exploration moves towards drilling, with the potential to prove up what we believe to be a world class helium province, Helium One is able to leverage the knowledge and experience of the team of experts that have joined us over the period allowing us to move more confidently into the next phase of our development.

“I would like to thank all our staff, shareholders, local communities and the ministers and Government of Tanzania for their continued support as we enter what will undoubtedly be a very exciting period for the Company and deliver what we hope will be a commercial discovery at Rukwa.” 

David Minchin, Helium One Global CEO, commented: 

“The last year has been an incredibly busy period for the Company delivering our first drilling programme and building on the data gained from that with our Phase II exploration programme.  This has provided us with an exceptional dataset from which we have planned our Phase II drilling programme, targeted to commence in Q1 2023.

“As a team we are very excited about the year ahead, returning to Tai to target the intervals that we were unable to evaluate last year and with a view to confirm a discovery that we believe can unlock the value of an entire province.

“I would again like to thank all our stakeholders for their continued support and look forward to providing further updates in due course.” 

Chairman’s Statement

The period under review has been another busy period for the Company.  On the operational front, Helium One delivered its maiden exploration programme culminating in the milestone events of the Company’s first two exploration wells being drilled on the Rukwa Project in Tanzania – the first drilling campaign in Africa to target primary helium. The work undertaken in 2021 provided a proof of concept and has enabled the Company to reduce exploration risk in finding helium in the Rukwa Basin. The drilling carried out on the Tai prospect demonstrated a working helium system: with good to excellent quality reservoirs, thick sealing units, and helium gas shows at multiple prospective intervals. 

Following this the Company then commenced Phase II of its exploration programme, building on information obtained from the 2021 campaign.  This included the successful completion of a 220-line kilometre 2D seismic campaign, targeting the northern extensions of known structural highs that are believed to act as charge focus areas for helium migration.  The Company also completed a multispectral satellite spectroscopy study over the entire licence area, which identified abundant near surface helium anomalies.  An Electrical Resistivity Tomography survey was also carried out across nine lines, totalling 56-line kilometres, over selected targets which will contribute significantly to our understanding of potential shallow helium plays within the top 200 metres of the Rukwa basin. 

All of the extensive work that the Company has completed to date ensures that the Company has the best information available to inform the planning and targeting for the Phase II drilling campaign.  The challenge of finding a suitable rig for Phase II drilling was compounded by increasing demand from the large and medium size oil and gas companies resulting in a scarcity of rigs and ancillary well evaluation equipment available for the East African market.  These challenges have been largely overcome and the Company has now signed a memorandum of understanding with Exalo Drilling S.A. (“Exalo”) for the supply of a drilling rig (“the Rig”) to be utilised in the Company’s drilling operation on the Rukwa licence. 

In the period under review the Board continued to seek ways to improve its Environment, Social and Governance (“ESG”) impact.  As part of our ESG strategy, we will continue our ongoing engagement with all stakeholders and governments to ensure that we operate our business in a way that is sustainable and benefits the local communities in which we have a presence.

During the year, the Company strengthened the team at Board level with the appointment of Nigel Friend as an Independent Non-Executive Director.  Nigel is highly regarded in the oil and gas sector having worked as CFO and CEO for a number of successful companies. Given his expertise, this is a major endorsement for the Company, its strategy and potential.  His deep industry experience and knowledge of commercialising significant gas discoveries will be invaluable as Helium One grows. 

I would like to take this opportunity to thank the Board and all our staff for all their efforts and continued dedication in what has been an incredibly busy period for the Company.  I would also like to thank the Government of Tanzania and the local communities in which we operate for their continued support which has enabled the Company to advance its operations at such a dramatic pace.  We look forward to continuing our work with them in the year ahead, and to delivering our Phase II programme.

Finally, I would like to thank all of our shareholders for their continued commitment and support. We believe that all the work completed to date in the field at Rukwa assists in de-risking our planned 2023 drilling effort. This combined information, along with the knowledge base of our expanded team of experienced gas professionals will allow us to run an efficient Phase II drilling programme with the maximum chance of success and proving up what we believe is a world class helium province.  The Company is able to leverage the vast knowledge and experience of the team of experts it has brought together under CEO David Minchin to grow the Company into a global explorer and producer.

Ian Stalker

Non-Executive Chairman

Chief Executive’s Statement

I am pleased to be reporting on the Group’s annual results for the 12 months to 30 June 2022.  The period under review has been another busy year of considerable progress for the Group leaving the Company poised to commence its Phase II drilling campaign.

The period to 30 June 2022 saw the Company conclude the Phase I exploration programme at our flagship Rukwa project whilst also commencing the Phase II programme with an infill 2D seismic campaign over the Rukwa licence area to identify the most suitable drill targets also completed.

Operational Review

On 11th August 2021, the Company announced the completion of drilling at its maiden Tai-1/-1A exploration well to a total depth (TD) of 1,121 metres. The well successfully identified helium shows within all three target formations, including five helium show intervals within the Karoo Group, as well as secondary targets in the Lake Bed Formation and Red Sandstone Group.

The uppermost Karoo encountered a thick (130 metres) claystone sequence, demonstrating seal presence which is supported by the interpretation of the 2D seismic data.  Wireline logging of the uppermost Karoo also indicated good reservoir potential with 15-20% porosity.

Unfortunately, due to poor downhole conditions, it was not possible to log the full Karoo sequence. Borehole washouts associated with interbedded sand-claystone sequences resulted in a series of ledges developing in the wellbore. The wireline tools subsequently became hung-up on these ledges and, after several attempts to clean the hole, the Company was unable to progress the tools beyond 880 metres.

Without wireline data it was not possible for the Company to assess the helium gas-bearing potential of the deeper, thicker, reservoir intervals which had demonstrated helium shows in the main Karoo Group.  As no free gas was identified, and due to safety concerns caused by the deteriorated hole conditions, no drill stem test was conducted, and no samples of brine or gas were recovered to surface. 

Whilst Helium One is disappointed not to have identified free gas within the Karoo Group of Tai-1/-1A, data acquired from this well significantly enhanced the Company’s understanding of the helium system in the Rukwa Rift Basin.  By encountering helium shows in the Lake Bed Formation, Red Sandstone Group and Karoo Group, combined with QEMSCAN and petrophysical analysis confirming the presence of a seal and demonstrating good reservoir potential, the Board are encouraged that we have identified a working helium system in the Rukwa Rift Basin.

The Company subsequently spudded the Tai-2 exploration well on 17th August 2021. The well, despite not identifying helium gas, provided further valuable information on shallow trapping potential.  The aim of this well was to target the continuation of a 2.2% helium show identified in a sandstone interval at 70.5 metres in Tai-1. Wireline logging of Tai-2 demonstrated a continuous clay over this interval, suggesting that the sandstone unit identified in Tai-1 pinched out but provides evidence for vertical and lateral seal potential in any Lake Bed targets.

Operations at the Rukwa project continued with the announcement on 1st November 2021 of the commencement of the Company’s Phase II 2D Seismic campaign.  The 200-line kilometre 2D seismic campaign targeted the northern extensions of known structural highs that act as a focus for helium charge.  Following encouraging early results, the Company decided to extend the survey with an additional 20-line kilometres of 2D Seismic to secure additional data over preliminary leads close to the Momba River.

Seismic acquisition parameters and line layout were based on the integration of data from the Phase I 2D seismic, the Company’s Airborne Gravity Gradiometry dataset, remote sensing of surface helium anomalies utilising Sentinel-2 satellite data, and Helium One’s technical understanding of charge and migration developed from Tai-1/-1A drilling results. 

Phase II 2D Seismic was positioned further northwards into the basin than the Phase I 2D Seismic, which was limited to areas of prospectivity close to the basin margin and to target depths of <2500 metres.  By advancing Phase II 2D Seismic investigation northward and targeting extensions of known structural highs and charge focus points, the Company’s aim was to identify targets with a lower charge risk and target depths down to ~2500 metres for testing with a conventional drill rig.

In January this year, Company announced the results of a Multispectral Satellite Spectroscopy (“MSS”) study providing a heat-map for helium at surface across the Company’s entire licence area.  The study identified abundant helium anomalies indicating widespread helium charge and migration across the Rukwa, Eyasi and Balangida Rift Basins.  The Company’s Phase II exploration programme continued in February with the Electrical Resistivity Tomography (“ERT”) survey over priority areas identified from Phase I and Phase II 2D seismic, as well as investigating surface helium anomalies identified in the MSS study.  The ERT survey was designed to identify resistivity anomalies within the ultra-shallow zone (<200m), allowing a better understanding of near surface geology which is poorly resolved by seismic.

Also in February, the results of the Quantitative Evaluation of Minerals by Scanning Electron Microscopy (“QEMSCAN”) study on drill cuttings collected from the Tai-1/-1A wells at its Rukwa (100%) project area were announced.  These results indicated good to excellent quality reservoir, demonstrating clean sands with very low clay content, whilst also confirming the presence of thick claystone units at the Top Karoo Group and Base Lake Bed Formation, as well as multiple intraformational claystone units.

Following the evaluation of all the data gained in the Phase I and Phase II exploration program, Helium One plans to commence Phase II exploration drilling operations at the Tai prospect which is the most advanced of all leads and prospects identified in the 1,898 km² Rukwa Basin.

The Subsurface team selected the Tai prospect as their primary Phase II exploration target given the new data from the Phase II 2D Seismic campaign. This interpretation has not only provided improved resolution over the Tai structural closure but has also identified a newly defined closure in the Lake Beds which was not previously targeted.

Drilling at Tai is supported by stratigraphic information from the 2021 drilling campaign. QEMSCAN analysis on cuttings has provided additional information on reservoir distribution, mineralogy, seal potential and grain size distribution of the entire sedimentary sequence at Tai-1/-1A, indicating good to excellent quality reservoir. This data also confirms the presence of a thick claystone unit at the top of the Karoo Group as well as the presence of intraformational claystone and calcrete interbeds within the Lake Bed Formation.

The Tai prospect is further understood by the identification of multiple helium shows (helium identified in drilling mud) across all formations but which the Company was unable to log or test with wireline equipment. With a robust structural closure, detailed information on reservoir and seal, and the identification of subsurface helium which proves a working helium system. Tai is the lowest risked prospect in Helium One’s current AOI of the Rukwa Basin. Given this, Tai will be the focus of the Company’s exploration expenditure with a primary objective of proving a discovery in the 2023 campaign.

The Company has now signed a memorandum of understanding (“MoU”) with Exalo Drilling S.A.  (ORLEN Group) (“Exalo”) for the supply of a drilling rig (“the Rig”) to be utilised in the Company’s drilling operation on the Rukwa licence, with a target spud date of Q1 2023 subject to the necessary funding for the drilling programme being in place.    

Exalo Drilling (ORLEN Group) is a one of Europe’s leading onshore drilling contractors with a fleet of 35 drilling rigs allowing for well drilling up to 8000m of depth.  Exalo Drilling is a global brand with branches in Pakistan, Tanzania, Kazakhstan, Czech Republic, Chad, and a subsidiary in Ukraine. The company has over 70 years’ experience operating in countries throughout Europe, Africa, and Asia and are known internationally for the delivery of high-quality drilling and oilfield services.

The Rig will be released from southern Africa on completion of current operations.  Thereafter, subject to final contract negotiations and dependent on local ground conditions, the Rig will mobilise directly to operations in Rukwa.  The Rig can be broken down into 28 tonne loads for ease of transportation, allowing for year-round transportation in a range of weather and road conditions.

The Rig was Helium One’s first choice during research following the 2021 drill campaign but had already been contracted for operations elsewhere.  As the Rig is already engaged in drilling activities that exceed the total depth anticipated at Rukwa there is no requirement for an independent rig audit. 

The Baker Hughes integrated service package will be transported from the same location and at the same time as the Exalo 202 Rig, meaning that drilling operations will be able to begin as soon as the Rig is in place and accepted as ready to commence.

Drilling will target the Tai prospect where Phase II 2D Seismic provided improved resolution over a robust structural closure at Karoo level, and also identified a newly defined closure in the Lake Beds which was not previously tested. With 2021 drilling providing detailed information on reservoir and seal, and the identification of subsurface helium on multiple horizons which proves a working helium system, the Company is confident that Tai prospect gives the best opportunity to make an economic discovery that unlocks the potential of the Rukwa helium province.

Licence Area Evaluation

Helium One submitted licence renewal applications over 12 of its licences which were due for second renewal during September and October 2022. 

As part of the renewal process, Helium One conducted a review of all the Company’s licences held with a view to fully or partially relinquish licences that were not considered to be prospective for helium. 

Prior to renewal, Helium One holds a prospecting licence footprint in the Rukwa Rift Basin totalling 3,448 km². Following review two PLs were fully relinquished (PL10728/2015 and PL10711/2015), and a further six were partially relinquished (PL10727/2015, PL10712/2015, PL10710/2015, PL10725/2015, PL10709/2015 and PL10686/2015). The others remained unchanged. This combined relinquished area totals 1,549.27 km² saving approximately $309,000 per year in licence fees.

The Helium One technical team selected the chosen areas for relinquishment based on the following criteria:

·   inaccessible offshore areas with no, or poorly, defined exploration leads;

·   onshore areas with no, or poorly, defined exploration leads; and

·    onshore areas on outcropping basement i.e. no sediment fill therefore deemed to be non-prospective

Retained areas were selected based on the following criteria:

·    existing prospective areas with 2D seismic data coverage;

·   offshore areas with well-defined leads, i.e. defined by multiple seismic interpreters, and supported by gravity – magnetic data; and

·   onshore areas with well-defined leads and prospects in areas with known surface helium seeps

By relinquishing portions of our licenced acreage, Helium One can eliminate those areas deemed to be non-prospective and ensure future work programmes are focussed more effectively on the remaining, higher ranked acreage that is leased.

Historically, expenditure on the licence areas has been capitalized on the Company’s balance sheet as an intangible asset.  The Board undertakes an annual review of the carrying value of the Group’s intangible assets and as a result of the relinquishment, the value of the intangible assets has been impaired by the total of the expenditure on the relinquished areas.  The total impairment charge for the year is $8,520,929.

Financial results for the year ended 30 June 2022

For the year to 30 June 2022 the Group recorded a total comprehensive loss attributable to shareholders of the Company of $13,356,151 an increase compared with $5,155,028 for the year to 30 June 2021. The largest contributor to the total comprehensive loss was the impairment loss of $8,520,929 on the relinquishment of licences as detailed in note 12 to the financial statements.

The Group’s net assets as at 30 June 2022 were $18,033,568 in comparison with $28,536,258 at 30 June 2021. The decrease is due to the impairment of the exploration assets as a result of the relinquishment of licence areas. At 30 June 2022, the Group cash position was $4,906,153.

Outlook

Helium remains an irreplaceable technology commodity in supply crisis: the Board believes that Helium One may have a significant asset which can help resolve this crisis. The year ahead promises to be another busy and very significant period for the Company as we deliver our Phase II drilling programme as we look to deliver a commercial discovery at our Rukwa Project. We have a strong and highly experienced management team clearly focussed on delivering a discovery at Rukwa.

I would like to take this opportunity to thank all our staff who have again worked so hard this year as well as the local communities and the Government ministries that have continued to work with us and support us enabling us to continue to drive our programme forward.  Lastly, I would also like to thank all of our shareholders for their continued support and look forward to providing further updates as we progress our Phase II exploration programme.

David Minchin
Chief Executive Officer

Helium One Global (LON:HE1), the primary helium explorer in Tanzania, has announced the completion of analysis of its proprietary high resolution Falcon Airborne Gravity Gradiometry and aero-magnetic data over the Balangida Rift Basin.  This work will lead to further helium gas exploration target generation in Balangida widening the overall Company opportunity in Tanzania.

Summary

·    Balangida Rift Basin has the presence of high-grade helium macro seeps enriched with other high-value noble gasses

·    Recent field work sampling showing 6.2%-6.4% helium and 2.0% argon

·    3D Inversion study created detailed maps of depth to basement across the Balangida Rift Basin

·    Increased knowledge of depth to basement and sediment thickness

·    Greater understanding of rift geometry, basin evolution and subsurface structure to aid exploration programme 

·    Developed advanced workflow integrating proprietary high-resolution Falcon AGG data with regional aero-magnetic, land-based gravity and radiometric data for improved calibration

·    Technique will now be applied to data for the Eyasi Basin to enable the evaluation of prospectivity potential of both basins and plan further exploration

David Minchin, Helium One Global Chief Executive Officer, commented:

“With so much operational focus on the Rukwa Rift Basin, where we are targeting drilling in Q1 2023, I am pleased to be able to report continued progress at Eyasi and Balangida.  There is potential for these basins to have salt deposits in the younger stratigraphy, and the Balangida Rift Basin is likely to contain volcanic tuffs, both of which have the capacity to be effective top-seals.  Furthermore, the Balangida Rift Basin offers potential for other high-value noble gasses with recent seep analysis assays showing 2% argon.

“Helium One holds prospecting licences totalling 2,966km² across the Tanzanian Helium Fairway.  Following a successful exploration campaign at Tai, the work we have commenced now will allow us to fast-track the development of our portfolio of projects and become a strategic player in resolving a supply-constrained helium market.”

Lorna Blaisse, Principal Geologist, commented:

“In collaboration with Getech, the technical team have developed an innovative workflow, using our own Falcon AGG data with a range of remote, regional and land-based geophysical datasets.  Sophisticated compound data analysis improves our confidence in the results of the inversion study, giving better understanding of rift geometry, basin evolution and subsurface structure to aid our exploration programme.

“The workflow developed at Balangida has demonstrated robust analytical techniques that can now be applied to regional data over the Eyasi Rift Basin.  This will enable the technical team to evaluate prospectivity potential in both basins and to plan for further geophysical studies in 2023 as we progress our exploration programme.” 

Background

Helium One have partnered with leading global gravity and magnetic geophysical specialists Getech in completing a 3D inversion study of high resolution Falcon AGG and aero-magnetic data over the Balangida Rift Basin, north-west Tanzania.

The Balangida Rift Basin is the smallest of the Company’s exploration projects, totalling 260km² in a single prospecting licence.  However, the basin is host to numerous high-grade, helium / nitrogen seeps, as well as indications of argon. Younger stratigraphy may contain salt deposits and there is potential for volcanic tuffs being deposited, improving potential for a well-developed top seal. 

Seep sampling undertaken by the Company in June / July 2022 identified numerous helium soil-in-gas anomalies. Macro-seep sampling identified high-grade helium (6.2% – 6.4% He) with a predominantly nitrogen carrier gas.  Additionally, these results included elevated readings for argon (2.0% Ar), a high-value noble gas used in high-temperature industrial processes where ordinarily non-reactive substances become reactive. Global argon markets are expected to grow at 5.5% CAGR to 2030, offering potential to develop argon as a valuable by-product to any future helium discovery.

The gravity-magnetic 3D inversion study has included the development of an advanced data analytical workflow, integrating proprietary high-resolution Falcon AGG data with regional aero-magnetic, land based gravity and radiometric data for improved model calibration.

The completed study has generated a detailed series of maps, increasing our knowledge of depth to basement and sediment thickness across the Balangida Rift Basin, and allowed greater understanding of rift geometry, basin evolution and subsurface structure to aid the development of our ongoing exploration programme.

The technique successfully developed at Balangida will now be applied to the available data we have covering the Eyasi Basin.   Getech have commenced this phase of the work, with internal technical workshops planned throughout December to review the results.  Conclusions of this work will allow the technical team to draft a forward work programme for both basins, with a view to acquiring 2D seismic in 2023.

Successful drilling at Tai will allow the Company to accelerate exploration across both basins towards drill-ready status, expanding our portfolio of world-class, high-grade, primary helium exploration assets.

Helium One Global (LON:HE1), the primary helium explorer, has provided a full project update, including an update on rig selection for the Company’s Phase II drilling programme due to commence in Q1 2023.

The Company has now signed a memorandum of understanding with Exalo Drilling S.A.  (ORLEN Group) (“Exalo”) for the supply of a drilling rig to be utilised in the Company’s drilling operation on the Rukwa licence. This change of drilling contractor follows legal complications that the Company believes would have impacted upon the timing and availability of the previously announced Predator Rig.

Summary

·    Selection of Exalo as preferred drilling contractor with MoU signed and final contract negotiation nearing completion.  

·    Target spud date remains Q1 2023

·    Exalo is a reputable drilling company providing onshore drilling rigs and associated services with a fleet of 35 land rigs

·    Rig to mobilise upon completion of current operation in southern Africa

·    Helium One will be utilising an active rig and crew directly from a drilling campaign in the region with no need for lengthy rig assessment process

·    The Rig can be broken down into 28 tonne loads, allowing rapid mobilisation

·    The Rig will be transported together with the Baker Hughes integrated service package that is currently in use at the same location

·    Use of Exalo for Phase II drilling programme is not expected to materially increase costs relative to use of Epiroc Predator 220 rig

·    All Prospecting Licences renewed, demonstrating continued project support by the Government of Tanzania

David Minchin, Chief Executive Officer, commented:

“Helium One have been conducting background due diligence on the Exalo Rig for some time and, as it became apparent that legal issues would delay the mobilisation of the Predator Rig, the Company was able to advance discussions with Exalo and execute an MoU that will enable the Company to secure the Rig for the Rukwa drilling campaign.  

“Under the terms of the MoU, the Rig will be mobilised directly from the current operating location to the Company’s licence in Rukwa.  The Rig will be transported alongside the Baker Hughes integrated service package, which is being used at the same location, thereby avoiding a delay to the start of our drilling campaign.

“As the Rig is currently undertaking drilling operations a lengthy assessment process is not required, allowing the Company to execute final contracts without additional delay.  The Rig has a larger 1200HP powertrain which will minimise the risk of downhole and operational issues and ensure that the Company has the best possible chance of identifying an economic helium discovery at Rukwa.”

“We look forward to finalising contract negotiations and welcoming Exalo on board as an experienced drilling contractor for our Phase II drilling campaign, targeted to commence in Q1 2023.” 

Ian Stalker, Non-Executive Chairman, commented:

“Helium One management team have demonstrated a prudent approach to operational planning.  It is a testament to the team and their approach that they had contingency measures in place to secure an alternative solution that allows for mobilisation directly from current operations, allowing drilling to proceed on schedule.

“Exploration at Rukwa has demonstrated all the geological qualities of an outstanding primary helium prospect.  A successful Phase II drilling campaign at Tai, where numerous mud shows from previous drilling have identified subsurface helium on multiple horizons, will be the key to unlocking an entire helium province that can be a game-changer in new supply for this high-tech, high-value, commodity.

“With the Exalo Rig and Baker Hughes package secured, we look forward to a successful drilling campaign in 2023.”

Exalo

Exalo Drilling (ORLEN Group) is a one of Europe’s leading onshore drilling contractors with a fleet of 35 drilling rigs allowing for well drilling up to 8000m of depth.  Exalo Drilling is a global brand with branches in Pakistan, Tanzania, Kazakhstan, Czech Republic, Chad, and a subsidiary in Ukraine. The company has over 70 years’ experience operating in countries throughout Europe, Africa, and Asia and are known internationally for the delivery of high-quality drilling and oilfield services.

The Rig will be released from southern Africa on completion of current operations.  Thereafter, and dependent on local ground conditions, the Rig will mobilise directly to operations in Rukwa.  The Rig can be broken down into 28 tonne loads for ease of transportation, allowing for year-round transportation in a range of weather and road conditions.

The Rig was Helium One’s first choice during research following the 2021 drill campaign but had already been contracted for operations elsewhere.  As the Rig is already engaged in drilling activities that exceed the total depth anticipated at Rukwa there is no requirement for an independent rig audit. 

The Baker Hughes integrated service package will be transported from the same location and at the same time as the Exalo 202 Rig, meaning that drilling operations will be able to begin as soon as the Rig is in place and accepted as ready to commence.

Drilling will target the Tai prospect where Phase II 2D Seismic provided improved resolution over a robust structural closure at Karoo level, and also identified a newly defined closure in the Lake Beds which was not previously tested. With 2021 drilling providing detailed information on reservoir and seal, and the identification of subsurface helium on multiple horizons which proves a working helium system, the Company is confident that Tai prospect gives the best opportunity to make an economic discovery that unlocks the potential of the Rukwa helium province.

Predator  

Following completion of the ADC rig audit on the Epiroc Predator 220 in Kenya the rig owner was able to commence export proceeding to mobilise the Rig out of Kenya.  However once export approval through the Kenyan Revenue Authority had commenced, and was proceeding as expected, an unrelated third-party instigated a claim against the owner of the Predator 220 Rig.

As the unforeseen legal dispute has capacity to delay the start of operations at the Rukwa project, the Company has decided to pursue the Exalo rig option.  Subsequently an MoU has been signed with Exalo and the Company is engaging in contract negotiations.

Although considerable management time has been spent on evaluating the Predator Rig, the Company are pleased that our parallel workflow investigating the Exalo 202 Rig has allowed us to move from one rig to the other without delaying the programme and without an increase in costs relative to using the Predator rig.

Licence Renewals

Helium One is also pleased to announce that it has received renewal certificates for all licences subject to renewal in September and October 2022.  Renewals cover more than 2,500km² of licences in the Rukwa, Eyasi and Balangida project areas.  We are grateful to the Tanzanian Mining Commission for their continued support and diligence in rapidly approving the renewal of these licences.

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences totalling more than 2,964km² across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.

The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. The assets lie near surface seeps with helium concentrations ranging up to 10.6% He by volume. All Helium One’s licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

The Company’s flagship Rukwa Project is located within the Rukwa Rift Basin covering 1,900km² in south-west Tanzania. The project is considered to be an advanced exploration project with leads and prospects defined by a subsurface database including multispectral satellite spectroscopy, airborne gravity gradiometry, 2D seismic data, and QEMSCAN analysis. The Rukwa Project has been de-risked by the 2021 drilling campaign, which identified reservoir and seal with multiple prospective intervals from basin to near surface within a working helium system.

Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

Helium One Global Ltd (LON:HE1), the primary helium explorer, has announced the successful completion of a third-party engineering audit on the operational capability of the Company’s preferred drilling rig for Phase II drilling programme at the Rukwa (100%) project area in Tanzania.

Summary

·    Rig audit has been completed and Rig has been signed off as “fit for purpose” by Aberdeen Drilling Consultants (“ADC”), an internationally recognised expert in rig audit and evaluation

·    Audit included a detailed examination of entire drilling rig and associated systems culminating in a successful high pressure endurance test requiring eight hours operation at >2,000 Psi

·    Epiroc Predator 220 drilling rig with 950HP powertrain and 100T mast rating capable of drilling 8.5″ hole to 2500m – more than sufficient to test targets at Tai with stacked closures identified to a maximum depth of 1300m

·    Tier one energy technology company Baker Hughes to provide integrated services including drilling fluid, cementing, wireline evaluation and downhole gas sampling services

·    Helium One to commence export procedures from Kenya to Tanzania including soliciting release letters from all related parties

Background

Helium One has completed a third-party inspection conducted by ADC on the Epiroc Predator 220 Land Rig based in Kenya.

The Predator drilling system was designed by Epiroc to meet the requirements of a flexible and mobile land rig capable of operating in remote basins.  The Rig features a 100-ton mast and top drive and is powered by a Cat C-27 V12 diesel engine delivering 950HP, capable of drilling an 8.5″ well to a depth of up to 2500m.  The Rig is more than capable to fully test targets at Tai where closures have been identified above basement to a maximum depth of 1300m. 

The rig is mounted on a truck for improved mobility and ease of operation.  Other components including mud system, substructure, and pipe skate are scaled for ease of logistics with a minimum number of truck movements required for mobilisation and inter-well moves.  Transport from within the East Africa Region saves considerable logistical time and cost over bringing a similar rig from Europe or the USA.

The completed audit required stripping, inspecting, and testing of all major rig components.  This included top drive, iron roughneck, pipe skate, control panels, electrical systems, and hydraulic systems. Audit of the rig carrier including rig engine and engine management system, carrier hydraulics and substructure hydraulics.  Audit of the mud system including mud pumps, tanks, high pressure, and low-pressure valve sets.  Audit of critical systems including safety systems and inspection of all critical spare parts and consumables carried with the rig. 

At the end of the audit each individual system was tested under high pressure before the commencement of an eight-hour endurance test.  All systems operated successfully together at pressure of 2,000 psi, simulating the effect of drilling at depth and pressures beyond that expected to be encountered at Rukwa.

With completion of the rig audit and receipt of the final report from ADC, Helium One are now able to commence export proceedings to mobilise the rig out of Kenya.  Export requires approval from Kenyan authorities but is compounded as all parties originally involved in the import of the drilling rig must also sign release papers.  While there can be no guarantee given that required release letters will be forthcoming, Helium One management are engaging with all related parties with the intention to commence mobilisation of the rig as soon as practical.

Thereafter commencement of Phase II drilling will be dependent on the arrival of Baker Hughes’ integrated service equipment.  Subject to contract, Baker Hughes who are world leaders in wireline evaluation, downhole gas sampling, and well completion cementing operations, are mobilising an integrated services package from operations in Southern Africa.  Baker Hughes anticipates equipment to be released from current operations in December, which would allow drilling to commence early in 2023.

David Minchin, Helium One Chief Executive Officer, commented:

“We are delighted to report the completion of the ADC audit over our preferred drilling rig at its yard in Kenya.  The audit has allowed a complete assessment of the Rig’s operational capability culminating in a successful high-pressure endurance test that required all systems on the rig to operate together under more than 2,000 Psi pressure load for a period of eight hours.  

“The in-depth audit completed by ADC has delivered significant value to the Company, flagging issues that had potential to cause considerable cost and delay if only identified later in the field.  These issues have been resolved and the Rig is now signed off as fit for purpose.

“The next crucial step is completion of export paperwork and commencement of rig mobilisation as soon as practical.  Helium One management team are in contact with all relevant parties and intend to be in Kenya to expediate this process.  Thereafter the spud date will be dependent on mobilisation of Baker Hughes equipment, currently anticipated to be released in December, enabling drilling operations to commence during January / February 2023.

“An alternative rig has been identified which would be capable of undertaking our drilling programme at our Tai Prospect in Tanzania. However this rig is not available until Q2 next year and hence remains as a standby option.”