AIM-listed Helium One Global, the primary helium explorer in Tanzania with a 50% working interest in the Galactica-Pegasus helium development project in Colorado, USA, provides an update on the Company's southern Rukwa Helium Project.
Highlights
- Company has commenced operations in southern Rukwa ahead of further testing using an Electrical Submersible Pump ("ESP")
- ESP expected to arrive in Tanzania mid to late December ahead of commencing ESP testing on ITW-1
- Associated equipment and rig crews already on site and completion string successfully retrieved from ITW-1 well using Company's drilling rig
- Contract executed with wireline services provider; Digital Borehole Surveying (PTY) Ltd ("DS") with logging activity currently ongoing
- Logging of open hole Basement section will be completed ahead of commencing ESP operations
- Civils work completed at site for water disposal during ESP operations, as well as road upgrades to access routes ahead of wet season
- Company awarded "Certificate of Incentives" for Mineral Processing by the Tanzania Investment and Special Economic Zones Authority ("TISEZA")
Lorna Blaisse, Chief Executive Officer, commented:
'This is the next step forward in progressing the southern Rukwa development in Tanzania. We remain hopeful that by being able to increase the flow rate from this discovery well using an ESP, we will see increases in the helium concentration and gas-water ratio. Our understanding is that the helium is sourced from the Basement and below, and we will be attempting to produce from this area at increased rates using the ESP as artificial lift. This will hopefully enable us to advance our contingent resource classification towards bookable reserves and further progress this development to the production stage.
The team continue to work hard in executing the deliverables of this important phase, and I'd like to also extend our thanks to the support of the local communities where we operate and to the Ministry of Minerals and the Mining Commission.'
Operational Preparation and Wireline Logging ahead of ESP Operations
The Company has commenced the next phase of its operations at ITW-1 in southern Rukwa, ahead of the ESP testing. The Company-owned Predator 220 drilling rig has successfully re-entered the ITW-1 wellbore and recovered the 2" completion string, together with the production packers. The well has also been prepared for follow-on wireline logging operations. This was undertaken by pumping a completion brine into the hole which removed residual cuttings in the well. DS are currently on site and will acquire in situ wireline logs and evaluate the results ahead of commencing ESP activities.
The rig crew are onsite and will be working with the wireline logging crew to deliver safe and effective data acquisition. The Company will evaluate these logs to establish the fracture network within the open hole Basement section ahead of ESP operations, in order to maximise flow rates across the targeted interval.
ESP Equipment Mobilisation and Planned Testing
The operational preparation was necessary to de-risk the initial part of the ESP operation and puts the Company in a position where it can install and run the downhole and surface ESP equipment on the ITW-1 well ahead of testing. The ESP equipment is currently being shipped from China and will be mobilised to site once it has arrived in country and cleared customs.
In addition to helium, the Company recognises that a significant volume of water will be produced during this testing phase. The civils work that will allow for disposal of this water is now complete, and a comprehensive water discharge plan is now in place. Water production is a metric that is used for production curves (see Sproule ERCE CPR on ITW-1 - May 2025) due to the relationship between the "gas in solution" play that is seen in the southern Rukwa Basin, with the produced water a mixture of meteoric and shallower formation fluid. The helium in this area is not dissolved within the water and remains in the free gas state. Therefore, to determine helium, and other gas flow rates, the water flow rate potential must be first considered. The helium gas remains in its free gas state due to the associated reservoir pressure, temperature and chemical inertness.
Certificate of Incentives Awarded
The Company is pleased to announce that it has recently been awarded a "Certificate of Incentives" for Mineral Processing by TISEZA. This award has been made in conjunction with the Tanzania Investment Centre, a government authority aimed at facilitating investment and growth in Tanzania across key sectors.
Having been awarded this certificate, the Company now has access to certain fiscal incentives including relief from import duties.
The Company awaits engagement from the Government regarding the execution of the regulatory agreements and the formal signing ceremony, following the recent election. Further announcements will be made as appropriate.
For further information please visit the Company's website: www.helium-one.com
Source: Helium One Global
