HE1 Helium One Global Ltd

01 July 2024

Helium One Global Ltd

("Helium One" or "the Company")

Operational Update

and Award of Director and Management Options

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to provide an update on progress at its Rukwa (100% Operated) project area ahead of its extended well test ("EWT") at Itumbula West-1 ("ITW-1").

Highlights

·    On track to deepen ITW-1 well and commence EWT in fault-fracture helium play in July

·    Company-owned rig is on-site and ready for third party services to rig up ahead of spud

·    Acquisition of well control equipment to complement drilling rig

·    Appointed experienced drill crew for EWT operations and personnel mobilisation underway

·    Long lead items arriving at site for July spud

·    Remobilisation of camp personnel and medical support to site

·    Contract executed with global technology company, SLB (formerly Schlumberger) for provision of cementing, drilling and completion fluids services, and surface well test equipment and services

·    GeoLog International BV ("GeoLog") contracted for mudlogging services

·    Laboratory results of helium samples from ITW-1 are consistent with measurements made by onsite field PVT laboratory

·    Second phase field work of ESIA study required for feasibility study ready to commence

·    Feasibility study and subsurface modelling underway ready for integration of EWT results ahead of Mining Licence application

Lorna Blaisse, Chief Executive Officer, commented:

"As we fast approach the next operational phase, we are on track to commence the crucial EWT operations at Itumbula West-1 in July. This is a very exciting time for the Company as the test will enable us to determine commercial flow rates, reservoir performance and helium concentrations over a longer period of time. The results of this EWT will enable us to better determine resource estimates and fully evaluate the potential of this new fault-fracture helium play we have at Itumbula.

The team has remained focused over the past few months to meet the timelines, including the ordering and delivery of long lead items, integrated subsurface modelling and engineering in order to form the basis of a feasibility study which will be required to apply for a Mining Licence to enable us to move into project development once the EWT is complete. We're very grateful to the Ministry of Minerals and the Mining Commission in Tanzania as well as the local communities in which we operate, for their ongoing support shown towards the Company and the advancement of the southern Rukwa helium project.

I would like to thank the team for their immense hard work over the last few months and the efforts that they have put in to get us to this stage. We are very excited about the EWT and the results that we believe it will yield, confirming the helium potential at Itumbula."

EWT and Operational Readiness

Following the success of flowing 4.7% helium to surface from the ITW-1 exploration well in February this year, the Company is on track to commence EWT operations at ITW-1 in July. Upon spud and re-entry into the cased and suspended well, the Company will deepen the well to intersect and test more fractures in the fractured Basement helium play prior to commencing the actual EWT. The EWT will target two zones where helium was successfully sampled from the drill stem test in the exploration well: across the fractured Basement and faulted Karoo intervals. This is expected to take 4-6 weeks to complete.

The results of the EWT will evaluate reservoir performance, commercial flow rates and helium concentrations over a longer period of time. The Company will also be running a Production Logging Tool which will complement the EWT data by providing more specific production data at predefined depths. The surface well testing equipment will interface with existing mudlogging equipment and the independent field Pressure Volume Temperature (PVT) wellsite laboratory. This will be integrated with the Company's helium detection equipment to enable real time monitoring of produced fluids with the ability to take additional samples.

The Company-owned drilling rig is on site and is ready for third party services to commence rig-up ahead of spud. The Company has recently purchased its own set of well control equipment, 3½" drill string and two mobile cranes to complement the drilling rig. These purchases will also further enhance the Company's ability to generate revenues in the medium to longer term.

The long lead items required for the EWT are on track to arrive at site in time for spud and the Company has commenced the remobilisation of camp personnel and medical support provision ahead of the commencement of operations.

An experienced drill crew have been appointed with many personnel returning from the Phase II drilling campaign. It is positive to see returning personnel and crew on this phase as a strong team aids efficient project delivery and consistency.

Appointment of Third-Party Services

The Company is pleased to have appointed all third-party services, and associated equipment with mobilisation to site is currently ongoing. The Company also welcomes global technology company, SLB (formerly Schlumberger), onto the project for this exciting phase and they will be complementing the operations with their surface well testing equipment and experienced well test engineers.

GeoLog, a world leader in energy industry services, will also return to the project for mudlogging services. They are very experienced team with real-time helium monitoring and familiar with the helium analysis process that the Company undertakes during its drilling operations.

Confirmation of Secondary Laboratory Results

The Company strives to deliver real-time helium measurements whilst drilling with the mobilisation of a Field PVT Laboratory. The analytical and calibration technique from this laboratory at site has been verified by a small subset of samples that were sent to an independent laboratory outside of Tanzania. The results from this laboratory have confirmed that the field measurements obtained by the Company whilst drilling are consistent with those measured by the independent third-party in their noble gas laboratory. Some samples indicated air contamination, which may suggest that helium concentrations that were brought to surface could be slightly higher than previously thought. The results from the EWT will provide a more detailed understanding and measurement of helium concentrations.

Feasibility Study and ESIA Progress ahead of Mining Licence Application

Following the results of the EWT, the Company will be submitting an application to convert its Prospecting Licences to Mining Licences ("ML") with a view to fully appraising and developing the project. As part of this application, the Company is required to submit a Feasibility Study and a completed ESIA study. The Company has recently expanded its subsurface team and now has a dedicated team comprised of a Development Geologist, Reservoir Engineer, Technical Lead and Well Test Engineer to build the detailed static model and run dynamic simulation models to determine reservoir performance and resource estimates from this complex fault-fracture play. The results of the EWT will be integrated into these models and formulate the basis of the Feasibility Study and ML applications.

The ESIA study, being undertaken by Tanzanian company MTL Consulting Ltd ("MTL"), is underway. As part of the ML application, a 6-month environmental study is required and MTL remain on track to complete this prior to the ML application. In accordance with relevant regulations, the project has also been registered with Tanzanian Government entity, National Environment Management Council, who will ratify the study and award the relevant certification upon completion of the study.

Award of Share Options to Directors and Management

The Board of Helium One recognises the exceptional performance of members of the management and executive team in delivering the project through to the planned EWT that is due to commence in July 2024.

To additionally incentivise management, the Board has resolved to issue 259,000,000 options to acquire ordinary shares at a strike price of 1p to management and Board members. 

All directors' options vest over a two-year period in three equal tranches being; ⅓ on grant, ⅓ 12 months from the date of grant, and ⅓ 24 months from the date of grant

Directors and PDMRs included in the award are detailed in the table below:

The total number of Options and Warrants in the Company is now 329,381,423, representing 6.2% of the Company's Issued Share Capital

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

Contact

Notes to Editors

Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences 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% helium by volume. All Helium One's licences are held on a 100% equity basis.

The Company's flagship southern Rukwa Project is located within the Rukwa Rift Basin covering 1,900km² in south-west Tanzania.  This project is considered to be entering an appraisal stage following the success of the 2023/24 drilling campaign, which has proved an established helium system where the Itumbula West-1 exploration well successfully flowed 4.7% helium to surface in Q1 2024. Additional follow-on leads and prospects are defined by subsurface database including multispectral satellite spectroscopy, airborne gravity gradiometry, 2D seismic data, and QEMSCAN analysis.

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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