Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, provides the following update on the drilling of the Tai-3 well.
Highlights
· Tai-3 well has successfully encountered helium shows whilst drilling in the Lake Bed Formation and the Karoo Group
· The Basement reservoir target has come in deep to prognosis and is yet to be reached; this has extended the drilling period
· Well depth is currently at 1,445m measured depth (“MD”), with well total depth (“TD”) now expected to be at ~1,550m MD
· On Sunday 29th October, whilst drilling the final section, the rig encountered a mechanical and an electrical fault which resulted in a temporary rig shut down to allow for troubleshooting and repairs
· Once drilling recommences, the Basement target should be reached quickly and this will be followed by a comprehensive wireline programme to fully evaluate the helium shows encountered whilst drilling
Details
The Tai-3 well has encountered helium shows whilst drilling in the Lake Bed Formation and the Lower Karoo Group. These measurements were made on the Micro Gas Chromatograph whilst drilling and have also been calibrated with the portable mass spectrometer to confirm the presence of helium in the mud gas.
The Company has not yet reached the third reservoir target of Basement and were hoping to reach well TD yesterday. The Basement target is now over 400m deeper than prognosed, but cuttings have indicated the presence of weathered metamorphic material, indicating that the well is now very close to the target interval.
On Sunday 29th October, whilst running back in hole following a drill bit change, there was a seal failure on the iron rough neck which is used to make and break connections of drill pipe. The Company is confident that this part can be replaced in-country but will require a few days to source and repair.
Following the component failure in the rig carrier on 4th October and prior to yesterday, the Predator 220 drilling rig had continued to perform well.
Once drilling has recommenced and has reached TD in Basement, the Company will then rig up for wireline operations and commence logging in order to gain additional information on reservoir characteristics, as well as to identify and sample any gas-bearing intervals. The Company will make further announcements in due course.
Lorna Blaisse, Chief Executive Officer, commented:
“We are pleased with the current results of Tai-3 with encouraging helium shows encountered in the Lake Beds and the Karoo. These initial results still need further evaluation to determine the full extent of what we have at Tai and where there may be gas-bearing intervals.
Whilst it’s frustrating to have suffered another small setback with the rig, we are confident we will resolve these issues quickly so we can get back to drilling and target the remaining reservoir in the Basement.”
For further information please visit the Company’s website: www.helium-one.com
