Helium One Global Ltd (AIM: HE1, OTCQB: HLOGF) received promising early indications following the drilling of the Tai-3 well in Tanzania, where helium levels in the Lower Karoo Group and Basement targets registered up to six times higher than background levels.
This significant finding aligns with the company’s initial projections and represents a positive development.
The Tai-3 well, currently at a measured depth of 1,448 meters, successfully reached the geological Basement, confirming the presence of weathered crystalline formations. As the well deepened, the concentration of inert gas, particularly helium, increased progressively, reinforcing the company’s confidence in the well’s potential.
Highlights
· Tai-3 well has successfully reached a TD of 1,448m measured depth (“MD”) having encountered weathered crystalline Basement
· Elevated helium shows, up to six times above background, have been identified in the Lower Karoo Group and Basement targets
· Helium shows increased in frequency and quality with depth, as anticipated
· Whilst drilling into Basement, a fracture zone was encountered, which yielded elevated helium readings at the top of the Basement and led to partial losses of drilling mud
· Forward plan, following maintenance and safety checks, is to pull out of hole and rig up to run wireline for formation evaluation and downhole gas sampling
Lorna Blaisse, the CEO of Helium One, expressed her satisfaction with the initial results, stating, “We are delighted with the initial results at Tai-3 and it was extremely encouraging to see the helium shows increase with depth, as we had anticipated.” She also noted the successful handling of minor rig issues and the safe completion of the drilling process.
In its report, Helium One disclosed the discovery of a fracture zone with elevated helium readings while drilling into the Basement zone. However, the operation encountered a loss of drilling mud. In response to this challenge, Blaisse explained, “Given the mud losses encountered once we had reached the fractured Basement, we’ve decided to TD now so we can minimize any risk to wellbore stability and ensure that we can obtain successful logs and downhole gas samples.”
The company is now gearing up for the next phase of operations, which involves thorough maintenance and safety checks. These essential steps precede wireline logging and downhole gas sampling, which will provide a more in-depth assessment of the well’s potential.
The positive results from the Tai-3 well have set an optimistic tone for Helium One Global’s exploration efforts in the region. The company’s immediate plan is to complete wireline operations and preliminary interpretations before making further announcements. The decision to drill a second well at the Itumbula site will depend on the insights gained from the wireline operations at Tai-3.
