Helium One Global (AIM: HE1), Tanzania’s premier helium exploration company, announce the completion of an independent evaluation of the prospective resources at the Tai Prospect (“Tai”). The assessment of the total gas and helium prospective resources and the Competent Person’s Report (CPR) for the Tai Prospect were conducted and issued by reserve auditors ERC Equipoise Ltd (ERCE).
· The report indicates a 2U1 net helium prospective resource estimate of 2.8 billion cubic feet (Bcf), and a total gas prospective resource estimate of 212.2 Bcf across combined intervals of the Lake Bed Fm, Nsungwe Fm, Karoo Sandstone, and weathered Basement. This shows a 61% surge from the initial resource estimation made by SRK Consulting (Australasia) Pty Ltd in the 2020 CPR.
· The 3U2 net helium prospective resources show an increase of 30% from the previous 2020 CPR by SRK Consulting (Australasia) Pty Ltd, with a current estimate of 7.1 Bcf in the ERCE report.
· A remarkable 294% increase from the 2020 CPR by SRK Consulting (Australasia) Pty Ltd is evident in the unrisked 3U2 total gas prospective resources, which currently stands at 437.8 Bcf in the ERCE report.
· These significant increases are a result of an in-depth interpretation of the additional 2D seismic data acquired across Tai in 2021, coupled with the Company’s enhanced understanding of the structural closure.
· The CPR will be available on the Company’s website shortly.
These results validate the hard work done by the Company’s technical team, demonstrating their technical proficiency in prospect maturation and identification. The Tai prospect remains the best-defined prospect in the Company’s portfolio and underscores the potential to optimize the economic value of helium in the Rukwa Basin.
As of now, the global demand for helium is at 6.6 Bcf in a US $7 billion market. Helium prices are escalating due to the present shortage, and with an average global import price of US $457/mscf as of January 2023, the past year has seen a 39% price surge, a trend expected to persist given the global deficit in the interim between new supply streams coming online.
Lorna Blaisse, CEO of Helium One, expressed her satisfaction with the independent report conducted by esteemed reserve auditors, ERCE. She lauded the technical team’s extensive work over the last two years and expressed confidence in the Tai prospect’s potential for validating helium presence in the Rukwa Basin. With significant increases in prospective resources and a Geological Chance of Success (CoS) similar to the previous CPR, Blaisse remains optimistic about the Tai prospect in the Rukwa Basin portfolio and commends her team’s continuous efforts in advancing this project.
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