Helium One confident about Phase II exploration campaign in Tanzania

Helium One (LON:HE1H) has provided an update on the progress of its Phase II 2D Seismic Campaign at its 100% owned Rukwa project in Tanzania.

The AIM-listed company said data acquisition commenced on 16th November and the late arrival of rains has resulted in excellent ground conditions.

As of 18th December, the company has completed 94% of the originally planned 200 line kilometre survey. Early results have been described as “encouraging” and so the company has decided to extend the survey want an additional 20 line kilometres of 2D seismic to secure additional data over promising targets with the previously unsurveyed Momba area.

The company also agreed to shoot a 15 kilometre high resolution line to test the suitability of high resolution seismic to resolve shallow structures and identify potential closures within the topmost 400 metres.

“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,” said Helium One Chief Executive Officer David Minchin. “Based on encouraging early results, the seismic campaign was expanded with an additional 20 line kilometres of acquisition over newly identified leads.”

Helium One said it is well funded for current exploration activities and is confident about its Phase II exploration campaign. The company added it is negotiating with a number of rig contractors for mobilisation of a conventional rig to target commencement of drilling in the third quarter of next year.

“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.,” Minchin added. “This information will feed into generating additional targets for our 2022 conventional drilling campaign.”

Separately, the company announced it had been granted an extension of up to three months for the publication of its financial results for the year ended 30th June 2021 as a result of delays caused by the COVID pandemic.

At 08:40GMT, shares in Helium One were trading higher by 0.9% at 6.92 pence per share.