Unaudited Interim Results

Helium One Global Ltd
07 March 2024
 

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07 March 2024 

 

 

 

HELIUM ONE GLOBAL LIMITED 

("Helium One" or the "Company") 

 

Unaudited Interim Results for the Six Months ended 31 December 2023 

 

Helium One Global Limited (AIM:HE1), the primary helium explorer, is pleased to announce its unaudited condensed and consolidated results for the six months ended 31 December 2023, in addition to providing an update on progress across the Company's projects in Tanzania post half year-end. 

 

Highlights 

 

·        Acquired Epiroc Predator 220 drilling rig and successfully mobilised rig to the Rukwa site

·        Commenced second drilling campaign as scheduled in Q3 2023

·        Completed drilling of Tai-3 well to a total depth ("TD") of 1,448m measured depth ("MD")

·        Tai-3 well provided a valuable dataset which enabled a greater understanding of the region and the follow-on Itumbula prospect

·        Raised £12.9 million before expenses through two fundraises in September and December 2023.

·        Net cash balance at 31 December 2023 of US$8.7 million

 

Post half year-end

 

·        Drilled Itumbula West-1 well, at a revised well location, reaching a TD of 961m MD

·        Flowed a high concentration of helium (4.7%), nine thousand times above background levels, to surface from Basement from the Itumbula West-1 well

·        In addition to helium, the Company also successfully flowed hydrogen to surface during Basement testing, at a concentration of 2.2%, over thirty-seven thousand times above background levels

·        Hot Basement fluids, measuring >80°C, were also encountered across the fault zone and in the Basement and are consistent with helium and hydrogen prone intervals

·        Company is now fully evaluating these results with the focus on advancing this project in the most effective way possible

·        Raised £4.7 million before expenses through a Company led placing

·        197 operating days completed since the spud of Tai-3 well with zero Lost Time Injuries; over 90,000 man hours and over 35,000km travelled in relation to personnel movements in the field

 

James Smith, Chairman of Helium One commented: 

 

"This has been an incredibly busy and transformational period for the Company, especially post the half year-end. The acquisition of our own rig in July 2023 enabled us to commence our second drilling campaign and provides us with significant optionality going forward, whether that be to drill additional wells efficiently and quickly or as a future revenue stream for the Company.

 

"Helium One's Phase II drilling campaign has been very successful.  Tai remains an interesting prospect which has been logged and sampled, and the Tai-3 well has been cased and suspended. The results from Itumbula can only be seen as transformational for the Company; flowing helium concentrations at these levels to surface would position Itumbula in the top section of major helium producing fields and this success is a testament to the hard work of the team and their expertise. The results acquired across both wells will now hold our focus as we look to evaluate the best way to advance this project in the most effective way possible.

 

"This is an exciting time for the Company, and we would like to thank all our stakeholders, local communities and the Government of Tanzania for their continued support and look forward to providing further updates in the near future."



 

For further information please visit the Company's website: www.helium-one.com  

 

Contact

Helium One Global Ltd

Lorna Blaisse, CEO

+44 20 7920 3150

 


Liberum (Nominated Adviser and Broker)

Scott Mathieson

Ed Thomas

Nikhil Varghese

+44 20 3100 2000

 


Tavistock (Financial PR)

Nick Elwes

Tara Vivian - Neal

+44 20 7920 3150

 

 

 

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences totalling more than 2,965km2 across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.

The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. The assets lie near surface seeps with helium concentrations ranging up to 10.6% He by volume. All Helium One's licences are held on a 100% equity basis.

The Company's flagship Rukwa Project is located within the Rukwa Rift Basin covering 1,900km2 in south-west Tanzania.  The project is considered to be an advanced exploration project with leads and prospects defined by a subsurface database including multispectral satellite spectroscopy, airborne gravity gradiometry, 2D seismic data, and QEMSCAN analysis. The Rukwa Project has been de-risked by the 2023/24 drilling campaign, which has identified a working helium system.

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.

Chairman's Statement 

 

The six-month period ended 31 December 2023 was another incredibly busy period for the Company; both operationally and corporately.  This has continued post the period end and, we were delighted to announce the successful drilling of the Itumbula West-1 well which flowed helium to surface at a concentration of 4.7%, equating to almost nine thousand times above background levels.

 

Operations

 

Rig Acquisition

 

Following the extensive evaluation of rig options, and, in order to remain on the critical path to a Q3 2023 spud, the Company successfully completed the acquisition of the Epiroc Predator 220 drilling rig in July 2023 - an oil and gas type rig capable of drilling to depths in excess of 2,000m - and its subsequent mobilisation to the Rukwa site. This was a highly significant achievement for the Company as ownership of the rig provides the opportunity to move quickly into further operations without the additional cost of keeping a rig on standby or the challenge of mobilising another rig into the country.

 

Drilling of Tai-3

 

The Tai-3 well was spudded successfully on 25 September 2023.  The drilling of this well took some time to complete as the rig had been cold stacked prior to the acquisition in July and as a consequence, some performance issues were encountered during the drilling of Tai-3. These took time to resolve as parts had to be sourced from overseas and shipped to site, resulting in significant delays to the completion of the well. However, TD was reached in early November.

Post period end, the Itumbula West-1 well was spudded successfully on 6 January 2024, at a revised well location, following geological learnings from the Tai-3 well and acquisition of valuable data. The two primary objectives of this well were to target and evaluate the fault system as well as the conventional Karoo play.  The Itumbula West-1 well reached TD on 25 January at 961m MD.

 

The Company then ran wireline logs which, combined with image logs, confirmed the presence and location of the fault zones and Basement fractures that were originally identified through the evaluation of the 2D seismic. Helium shows obtained from the drilling mud whilst drilling had already indicated that these zones were likely to be helium-bearing intervals, and the wireline data enabled the well test intervals to be identified.

The Company identified three zones for well testing, and upon completion of each Drill Stem Test ("DST"), all three zones successfully yielded downhole gas samples. When performing the Basement DST, high concentrations of helium began to flow to surface following reverse circulation and yielded a compositional mix up to 4.7% helium, 1.5% argon, 8% oxygen and 86% nitrogen. These results were evaluated using an onsite Mass Spectrometer and verified from downhole samples by a field PVT laboratory at the well site. A measured helium concentration of 4.7% equates to almost nine thousand times above background levels of 5.3ppm.

Two subsequent well tests were carried out across the fault zone and yielded similar results from the downhole samples which were evaluated in the onsite field PVT laboratory. The Company has identified that the frequency of helium increases with depth and is preferentially carried in hot fluids out of the Basement and along fault conduits. As the helium rises through the well bore, the pressure decreases, and it is thought that the helium then comes out of solution and increases in concentration.

This was further corroborated with mudlogging data that showed elevated helium whilst drilling the 8½" hole section through the Lake Beds Formation and the shallow fault zone. The well produced a continuous measurement of helium gas across the micro-gas chromatograph ("micro-GC") and this consistent helium gas measurement was repeated during hole opening operations in preparation for running casing.

Despite having an accurate, independent field PVT laboratory on site, the Company has collected duplicate samples where possible, and these are in the process of being sent to a second laboratory for further independent verification once the export process is complete. However, the Company has sufficient information from its onsite analysis and field PVT laboratory at site to continue with its work programme.

In addition to high helium flowing to surface, the Company encountered elevated hydrogen levels that flowed to surface. This concentration of hydrogen was measured at 2.2% using the micro-GC equipment and is over thirty-seven thousand times above background levels (0.6ppm).

During the DST, it was noted that the downhole temperature gauges detected elevated temperatures (>80°C) associated with the release of hot Basement fluids, and subsequently, helium. These temperatures are indicative of a low enthalpy geothermal well. This geothermal energy has the potential to result in either a direct use project or a binary fluid electricity producing plant.  This in turn could be utilised in several ways, including a power source in the development and production phase.

The Predator 220 drilling rig completed the drilling of the Itumbula West-1 well in eighteen days to a total depth of 961m MD, successfully ran wireline operations and completed three DSTs. Non-productive time was reduced by over 350% between the Tai-3 and Itumbula West-1 wells, with zero downtime related to hydraulic issues. This improvement reflects and justifies the comprehensive upgrade and maintenance programme that the Company carried out post Tai-3.

General operations and HSSE

The Tai-3 well was spudded on 25 September 2023 and the drilling campaign was completed on 6 February 2024 upon completion of the Itumbula West-1 well. That represents a total of 197 operating days, or more than 90,000-man hours and, in addition, over 35,000 km in operational travel was undertaken by personnel during that period. The Company is extremely proud of the fact that this was achieved without any Lost Time Injuries, and this is a testament to the rigorous HSE policies and procedures that were put in place and the professionalism and commitment of all personnel and contractors who were present and assisted with the drilling campaign.  

Financing

In September 2023 the Company raised £6.8 million before expenses (approximately US$8.7 million) through the issue of 113,333,333 new ordinary shares at a price of 6 pence per new ordinary share.  The proceeds of this fundraise were for the cost overruns of the Tai-3 well and the drilling of the Itumbula well at a revised location.

On 20 December 2023, the Company announced that it had raised £6.1 million before expenses (approximately US$7.7 million) through the issue of 2,420,842,500 new ordinary shares at a price of 0.25 pence per new ordinary share. This fundraise provided essential funding to enable the Company to complete the drilling of the Itumbula West-1 well whilst all the equipment and third-party services were mobilised.

Post period-end, on 7 February 2024, the Company announced that it had raised £4.7 million, before expenses (approximately US$5.92 million), through a company led placing of 313,333,333 new ordinary shares at a price of 1.5p per new ordinary share.

The company led placing provides Helium One with sufficient working capital to progress its planning for the next stage of the work programme in Tanzania.

 

Board Changes

There were several changes to the Board and its structure during the period. Ian Stalker decided to step down from his position as Non-Executive Chairman after five years in the post, to reduce the number of his non-executive roles. I was delighted to be asked to take over from Ian and stepped into the role of Non-Executive Chairman on 1 August 2023.

During Ian's tenure as Chairman, he oversaw a period of significant achievement, including the Company's successful listing on AIM, its maiden drilling programme in the Rukwa Basin, as well as guiding the Company ahead of the Phase II drilling campaign in the Rukwa Basin in September. The Board would like to take this opportunity to thank Ian for his immense contribution during his time with the Company.

Additionally, Robin Birchall stepped down from his position as Non-Executive Director to focus on other commitments. Russel Swarts stepped down from his Executive role as Finance Director and has now taken up a Non-Executive Director role with the Company.

 

Outlook 

 

The next six months is expected to be an incredibly busy period of growth for the Company.  Itumbula has the potential to be a truly transformational discovery for the Company and the team is now determining the next steps on how best to develop Itumbula and advance the project in the most effective way possible; one that will aim to achieve commerciality at the earliest opportunity.  

I would like to take this opportunity to thank all our stakeholders for their continued support and look forward to providing further updates in due course.

 

James Smith

Chairman  

06 March 2024 

 


 

 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Notes

6 months to 31 December 2023 Unaudited

6 months to 31 December 2022 Unaudited

$

$

Continuing operations




Revenue

 

                   1,440

                           -

Administration expenses

4

          (1,066,187)

          (1,858,721)

Other income


                           -  

                          -  

Other gains and losses


                           -  

                           -  

Operating loss


          (1,064,747)

          (1,858,721)

Finance costs


                           -  

                           -  

Loss for the period before taxation


          (1,064,747)

          (1,858,721)

Taxation


                           -  

                           -  

Loss for the period from continuing operations (attributable to the equity holders of the parent)


          (1,064,747)

          (1,858,721)

 


 

 

Items that may be reclassified subsequently to profit or loss:




Exchange differences on translation of foreign operations


             (314,379)

               636,723

Total comprehensive loss for the period (attributable to the equity holders of the parent)


          (1,379,126)

          (1,221,998)

 


 

 

Earnings per share:




Basic and diluted earnings per share (cents)

5

(0.12)c

(0.29)c

                                                                                                                                   


 

As at

As at

As at

31 December 2023 Unaudited

30 June 2023 Audited

31 December 2022 Unaudited

$

$

$







Non-current assets


 

 

 

Intangible assets

7

          32,385,522

          15,509,515

          13,300,525

Property, plant & equipment


            2,378,097

                   5,611

                   4,393

Other receivables


            2,082,010

            1,231,593

            1,216,998

Total non-current assets


          36,845,629

  16,746,719

          14,521,916

Current assets


 


 

Inventories


            1,476,362

                 59,842

Trade and other receivables


               354,840

            2,238,094

               668,467

Cash and cash equivalents


            8,744,705

            9,600,786

          13,730,250

Total current assets


            9,445,512

          13,315,242

          14,458,559

Total assets


          46,291,141

          30,061,961

          28,980,475

 


 

 

 

LIABILITIES


 

 

 

Current liabilities


 


 

Trade and other payables


            4,494,986

            2,857,157

               398,782

Total liabilities


            4,494,986

            2,857,157

               398,782

Net assets


          41,796,155

          27,204,804

          28,581,693

 


 

 

 

EQUITY

Share premium

8

          70,372,410

          54,468,236

          54,489,977

Other reserves


            3,994,406

            4,242,482

            3,565,535

Retained earnings


       (32,570,661)

        (31,505,914)

        (29,473,819)

Total equity


          41,796,155

          27,204,804

          28,581,693

 



 

 

Note

Share premium

Other reserves

Retained earnings

Total equity

$

$

$

$

Balance as at 1 July 2022

 

   43,061,318

      2,587,348

 (27,615,098)

       18,033,568

Comprehensive income

 

 

 

 

 

Loss for the period


                    -  

                    -  

   (1,858,721)

   (1,858,721)

Currency translation differences


                    -  

         636,723

                    -  

        636,723

Total comprehensive loss for the period

 

                    -  

         636,723

   (1,858,721)

   (1,221,998)

Transactions with owners recognised directly in equity

 

 

 

 

 

Issue of shares

 

   12,050,603

                     -  

                    -  

   12,050,603

Cost of share issue

 

      (621,944)

                     -  

                    -  

      (621,944)

Share based payments


                    -  

         341,464

                    -  

        341,464

Total transactions with owners

 

   11,428,659

         341,464

                    -  

   11,770,123

Balance as at 31 December 2022 (unaudited)

 

   54,489,977

      3,565,535

 (29,473,819)

   28,581,693

 

 

                        

                        

                        

                        

Comprehensive income

 

 

 

 

 

Loss for the period


                    -  

                     -  

   (1,475,409)

   (1,475,409)

Currency translation differences


                    -  

           24,492

                    -  

          24,492

Total comprehensive income for the period

 

                    -  

           24,492

   (1,475,409)

   (1,450,917)

Transactions with owners recognised directly in equity

 

 

 

 

 

Issue of shares - for fees/services


                    -  

                     -  

      (721,237)

      (721,237)

Issue of shares - for fees/services


        (31,669)

                     -  

                    -  

        (31,669)

Cost of share issue


        (21,741)

                     -  

                    -  

        (21,741)

Share based payments


                    -  

         467,296

                    -  

        467,296

Reversal of Merger Acquisition Reserve


                    -  

         349,710

                    -  

        349,710

Warrants and options expired during the period


                    -  

       (146,480)

         146,480

                    -  

Warrants and options exercised during the period


          31,669

         (18,071)

           18,071

          31,669

Total transactions with owners

 

        (21,741)

         652,455

      (556,686)

          74,028

Balance as at 30 June 2023 (audited)

 

   54,468,236

      4,242,482

 (31,505,914)

   27,204,804

 

 





Comprehensive income

 

 

 

 

 

Loss for the period


                    -  

                     -  

   (1,064,747)

   (1,064,747)

Currency translation differences


                    -  

       (314,379)

                    -  

      (314,379)

Total comprehensive loss for the period

 

                    -  

       (314,379)

   (1,064,747)

   (1,379,126)

Transactions with owners recognised directly in equity

 

 

 

 

 

Share based payments


                    -  

           66,303


          66,303

Shares issued for services


          49,846

                     -  

                    -  

          49,846

Issue of shares


     8,472,586

                     -  

                    -  

     8,472,586

Cost of share issue


      (448,150)

                     -  

                    -  

      (448,150)

Warrants and options exercised during the year


        751,988

                     -  

                    -  

        751,988

Issue of shares


     7,764,557

 

 

     7,764,557

Cost of share issue


      (686,653)

 

 

      (686,653)

Total transactions with owners

 

   15,904,174  

           66,303

                    -  

   15,970,477

Balance as at 31 December 2023 (unaudited)

 

   70,372,410

      3,994,406

 (32,570,661)

   41,796,155

 

 

 

 

 

 

 

6 months to 31 December 2023 Unaudited

6 months to 31 December 2022 Unaudited

Notes

$

$

Cash flows from operating activities

 

 

 

Loss before taxation


    (1,064,747)

    (1,858,721)

Adjustments for:


 

 

Depreciation & amortisation


         121,806

             3,367

Impairment on acquisition


                     -  

                     -  

Impairment of inventory


                    -  

           58,036

Shares issued for services


           49,846


Share based payments


           66,303

         341,464

Finance costs


                     -  

                     -  

(Increase) in trade and other receivables


      1,032,837

         (30,777)

(Increase) / decrease in inventories


      1,130,394

                     -  

Increase/(decrease) in trade and other payables


      1,637,829

       (212,491)

Net cash used in operating activities


      2,974,268

    (1,699,122)

Cash flows from investing activities


 

 

Purchase of Plant & Equipment


    (2,494,291)

                     -  

Expenditure on intangible assets

7

  (16,876,007)

    (1,542,163)

Net cash used in investing activities


  (19,370,298)

    (1,542,163)

Cash flows from financing activities




Proceeds from the issue of shares


    16,989,131

    12,050,603

Cost of share issue


    (1,134,803)

       (621,945)

Net cash generated from financing activities


    15,854,328

    11,428,659

Net (decrease)/ increase in cash and cash equivalents


       (541,702)

      8,187,374

Cash and cash equivalents at beginning of period


      9,600,786

      4,906,153

Exchange movement on cash


       (314,379)

         636,723

Cash and cash equivalents at end of period


      8,744,705

    13,730,250


 

Going concern

The accounting policies adopted are consistent with those used in the preparation of the Group's financial statements for the year ended 30 June 2023 and corresponding interim reporting period.  There were no new or amended accounting standards that required the Group to change its accounting policies.  The directors also considered the impact of standards issued but not yet applied by the Group and do not consider that there will be a material impact of transition on the financial statements. 

Notes

6 months to 31 December 2023 Unaudited

6 months to 31 December 2022 Unaudited

$

$

 




Depreciation

 

               121,806

                   3,367

Wages and salaries (including Directors' fees)


               234,968

               233,489

Professional & Consulting fees


               395,960

               472,388

Insurance


               100,356

                 15,946

Office expenses


                 67,094

                   6,685

Impairment of inventory


                          -  

                 57,985

Share option expense


                 66,303

               341,464

Travel and subsistence expenses


                   8,571

                   8,208

Foreign currency loss / (profit)


             (107,747)

               800,811

Other expenses


               178,876

               (81,622)

 


            1,066,187

           1,858,721

 

The calculation for earnings per share (basic and diluted) is based on the consolidated loss attributable to the equity shareholders of the Company is as follows:

 

6 months to 31 December 2023 Unaudited

6 months to 31 December 2022 Unaudited

$

$

 




Loss attributable to equity shareholders

 

          (1,064,747)

          (1,858,721)

Weighted average number of Ordinary Shares


        925,281,778

        633,785,263

Loss per Ordinary Share ($/cents


                   (0.12)

                   (0.29)

 

 

 

Earnings and diluted loss per share have been calculated by dividing the loss attributable to equity holders of the Company after taxation by the weighted average number of shares in issue during the year. Diluted share loss per share has not been calculated as the options, warrants and loan notes have no dilutive effect given the loss arising in the period.

 

 

Exploration & Evaluation at Cost and Net Book Value

 

 

$



 11,758,362



   1,034,724



      514,587



       (7,149)

 

 

 13,300,524






   1,932,317



       (7,322)



      423,582



                 -  



     (38,783)

 

 

   2,309,794



   (100,803)

 

 

 15,509,515

 

 

 



 16,277,827



      605,329



       (7,149)

 

 

 32,385,522

 

 

 

Number of shares

Ordinary shares

Total

 

 

$

$

As at  31 December 2022

        813,421,641

          54,711,316

          54,711,316

Share Issue costs

                           -  

          (1,565,622)

          (1,565,622)

 

        813,421,641

          53,145,694

          53,145,694





Issue of new shares

            6,857,361

            1,858,878

            1,858,878

Share issue costs

                           -  

             (536,336)

             (536,336)





As at  30 June 2023

        820,279,002

          56,570,194

          56,570,194

Share Issue costs

                           -  

          (2,101,958)

          (2,101,958)

 

        820,279,002

          54,468,236

          54,468,236





Issue of shares - share based payment

               644,095

                 49,846

                 49,846

Issue of shares - exercise of options

            6,450,000

               230,341

               230,341

Issue of shares - exercise of options

            1,000,000

                 36,113

                 36,113





Issue of new shares - 13 September 2023

        114,083,333

            8,472,586

            8,472,586

Share issue costs

                           -  

             (448,150)

             (448,150)





Issue of shares - exercise of options

            1,000,000

                 35,180

                 35,180





Issue of shares - exercise of options

          13,000,000

               450,353

               450,353





Issue of new shares - 29 December 2023

     2,445,921,000

            7,764,558

            7,764,558

Share issue costs


             (686,653)

             (686,653)





As at 31 December 2023

     3,402,377,430

          73,609,171

          73,609,171

Share Issue costs

                           -  

          (3,236,761)

          (3,236,761)

 

     3,402,377,430

          70,372,410

          70,372,410

 

 

 

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