Completion of Rig Audit
10 October 2022
Helium One Global Ltd
("Helium One" or "the Company")
Completion of Rig Audit
Helium One Global (AIM: HE1), the primary helium explorer, is pleased to announce the successful completion of a third-party engineering audit on the operational capability of the Company's preferred drilling rig ("the Rig") for Phase II drilling programme at the Rukwa (100%) project area in Tanzania.
Summary
· Rig audit has been completed and Rig has been signed off as "fit for purpose" by Aberdeen Drilling Consultants ("ADC"), an internationally recognised expert in rig audit and evaluation
· Audit included a detailed examination of entire drilling rig and associated systems culminating in a successful high pressure endurance test requiring eight hours operation at >2,000 Psi
· Epiroc Predator 220 drilling rig with 950HP powertrain and 100T mast rating capable of drilling 8.5" hole to 2500m - more than sufficient to test targets at Tai with stacked closures identified to a maximum depth of 1300m
· Tier one energy technology company Baker Hughes to provide integrated services including drilling fluid, cementing, wireline evaluation and downhole gas sampling services
· Helium One to commence export procedures from Kenya to Tanzania including soliciting release letters from all related parties
David Minchin, Chief Executive Officer, commented:
"We are delighted to report the completion of the ADC audit over our preferred drilling rig at its yard in Kenya. The audit has allowed a complete assessment of the Rig's operational capability culminating in a successful high-pressure endurance test that required all systems on the rig to operate together under more than 2,000 Psi pressure load for a period of eight hours.
"The in-depth audit completed by ADC has delivered significant value to the Company, flagging issues that had potential to cause considerable cost and delay if only identified later in the field. These issues have been resolved and the Rig is now signed off as fit for purpose.
"The next crucial step is completion of export paperwork and commencement of rig mobilisation as soon as practical. Helium One management team are in contact with all relevant parties and intend to be in Kenya to expediate this process. Thereafter the spud date will be dependent on mobilisation of Baker Hughes equipment, currently anticipated to be released in December, e nabling drilling operations to commence during January / February 2023.
"An alternative rig has been identified which would be capable of undertaking our drilling programme at our Tai Prospect in Tanzania. However this rig is not available until Q2 next year and hence remains as a standby option. "
Background
Helium One has completed a third-party inspection conducted by ADC on the Epiroc Predator 220 Land Rig based in Kenya.
The Predator drilling system was designed by Epiroc to meet the requirements of a flexible and mobile land rig capable of operating in remote basins. The Rig features a 100-ton mast and top drive and is powered by a Cat C-27 V12 diesel engine delivering 950HP, capable of drilling an 8.5" well to a depth of up to 2500m. The Rig is more than capable to fully test targets at Tai where closures have been identified above basement to a maximum depth of 1300m.
The rig is mounted on a truck for improved mobility and ease of operation. Other components including mud system, substructure, and pipe skate are scaled for ease of logistics with a minimum number of truck movements required for mobilisation and inter-well moves. Transport from within the East Africa Region saves considerable logistical time and cost over bringing a similar rig from Europe or the USA.
The completed audit required stripping, inspecting, and testing of all major rig components. This included top drive, iron roughneck, pipe skate, control panels, electrical systems, and hydraulic systems. Audit of the rig carrier including rig engine and engine management system, carrier hydraulics and substructure hydraulics. Audit of the mud system including mud pumps, tanks, high pressure, and low-pressure valve sets. Audit of critical systems including safety systems and inspection of all critical spare parts and consumables carried with the rig.
At the end of the audit each individual system was tested under high pressure before the commencement of an eight-hour endurance test. All systems operated successfully together at pressure of 2,000 psi, simulating the effect of drilling at depth and pressures beyond that expected to be encountered at Rukwa.
With completion of the rig audit and receipt of the final report from ADC, Helium One are now able to commence export proceedings to mobilise the rig out of Kenya. Export requires approval from Kenyan authorities but is compounded as all parties originally involved in the import of the drilling rig must also sign release papers. While there can be no guarantee given that required release letters will be forthcoming, Helium One management are engaging with all related parties with the intention to commence mobilisation of the rig as soon as practical.
Thereafter commencement of Phase II drilling will be dependent on the arrival of Baker Hughes' integrated service equipment. Subject to contract, Baker Hughes who are world leaders in wireline evaluation, downhole gas sampling, and well completion cementing operations, are mobilising an integrated services package from operations in Southern Africa. Baker Hughes anticipates equipment to be released from current operations in December, which would allow drilling to commence early in 2023.
For further information please visit the Company's website: www.helium-one.com
Contact
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Helium One Global Ltd David Minchin, CEO |
+44 20 7920 3150 |
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Liberum Capital Limited (Nominated Adviser and Joint Broker) Scott Mathieson Ed Thomas Nikhil Varghese |
+44 20 3100 2000 |
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Peterhouse Capital Limited (Joint Broker) Lucy Williams |
+44 20 7220 9792 |
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Tavistock (Financial PR) Nick Elwes Tara Vivian - Neal |
+44 20 7920 3150
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Notes to Editors
Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences totalling more than 2,964km2 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 and are in close proximity to the required infrastructure.
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 2021 drilling campaign, which identified reservoir and seal with multiple prospective intervals from basin to near surface within 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.
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