Operational and Trading Update

RNS Number : 1156W

Helium One Global Ltd

20 December 2021

 

20 December 2021

Helium One Global Ltd

("Helium One" or "the Company")

Operation Update

Trading Update

Extension for Financial Reporting Deadline

Helium One Global (AIM: HE1), the primary helium explorer, is pleased to update the market on progress of its Phase II 2D Seismic Campaign at Rukwa (100%) project.

On 16 November, Helium One commenced data acquisition of its 200 line kilometre Phase II 2D Seismic Campaign at Rukwa.  The campaign is ongoing with the late arrival of rains to Rukwa resulting in excellent ground conditions for data acquisition.

As of 18 December, the company has completed 188.5 line kilometres, or 94% of the originally planned 200 line kilometer survey.  Following encouraging early results, the Company has decided to extend the survey with an additional 20 line kilometres of 2D Seismic to secure additional data over promising targets within the previously unsurveyed Momba area.

The Company has also agreed with AGS to shoot a 15 km 'high resolution' line with 5 metre source and receiver spacing.  This experimental line will test the suitability of high resolution seismic to resolve shallow structures and identify potential closures within the topmost 400 metres.  The line, which crosses the Tai and Itumbula Highs, will provide valuable data in understanding stratigraphic and structural variation within the poorly resolved shallow and ultra-shallow zone.  

Trading Update

Helium One remains well funded for current exploration activities.  The Company is confident about its Phase II exploration campaign and is in negotiation with a number of rig contractors for mobilisation of a conventional rig to target commencement of drilling in Q3 2022.  After payment of all due invoices related to Phase I drilling, cash reserves available for Phase II exploration as of 31st October 2021 stand at USD $11,506,914.75 (GBP £8.7 million) with liabilities excluding disputed invoices of USD $239,429.21 (GBP £0.18 million).

Extension for Financial Reporting Deadline

As a result of the Covid Pandemic, there have been unavoidable delays in the completion of the audit of the Company's Tanzanian Subsidiaries due to the availability of personnel and the movement of such personnel in country to complete stock-takes of inventory items at the camp at Rukwa.  This has subsequently had a knock-on effect in the UK in terms of timing for the Company's auditors to review and audit the Company consolidated accounts.

Further to this and in line with guidance provided by AIM Regulation in "Inside Aim" on 26 March 2020,   the Company has therefore been granted an extension of up to three months for the publication of its financial results for the year ended 30 June 2021, such that it will publish these results as soon as possible, but by no later than 31 March 2022.

David Minchin, Chief Executive Officer, commented:

"We are delighted with progress at our extended Phase Il 2D seismic campaign, which has provided high-quality data across the northern extensions of Tai and Itumbula structural highs that are believed to be acting as a charge focus for helium migration.  Based on encouraging early results, the seismic campaign was expanded with an additional 20 line kilometres of acquisition over newly identified leads.

"I would like to thank the community in Rukwa and all of our field staff for their hard work and dedication in delivering a safe and successful project to date.  A seismic survey is a huge undertaking and many of the team currently on site will be spending Christmas in the field working on additional line kilometres and the high resolution line over the Tai and Itumbula structural highs.

"We remain well financed and look forward to updating the market with additional information developed from the Phase II 2D seismic campaign once data has been processed and interpreted.  This information will feed into generating additional targets for our 2022 conventional drilling campaign."

Contact

Helium One Global Ltd David Minchin, CEO	[phone]
Beaumont Cornish Ltd (Nominated Adviser) James Biddle Roland Cornish	[phone]
Canaccord Genuity Limited (Joint Broker) Adam James	[phone]
Peterhouse Capital Limited (Joint Broker) Lucy Williams	[phone]
Tavistock (Financial PR) Nick Elwes Tara Vivian-Neal	[phone]

Notes to Editors

Helium One was founded in September 2015 to explore, develop, and ultimately, become a producer of low-carbon helium, a critical material that is essential in many modern technologies.

Helium One has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.

Helium One's assets are located within the rift basins on the margin of the Tanzanian Craton.  The Company has secured 18 Prospecting Licences covering more than 4,512 km² in three distinct project areas: the Rukwa, Balangida and Eyasi projects. These are located near surface seeps with helium concentrations ranging up to 10.6% He by volume.

The Company's flagship Rukwa Project is located within the Rukwa Rift Basin covering 3,448km² in south-west Tanzania.  The project is considered to be an advanced exploration project with a portfolio of leads and prospects defined by high-resolution gravity gradiometry, and modern and historic 2D seismic. 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. 

SRK Consulting have reported a 'Best Estimate' Un-risked Prospective Resource of 138 Bcf (2U/P50) for the Company's Rukwa Project, meaning that the project has potentially strategic global implications with the ability to significantly resolve helium supply/demand issues.

All Helium One's licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

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.

 

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