pro_s2009
7 months ago
Here we have it then.......very good news.......well suspended now for future deppening into the basement. Strong Helium shows and samples taken.
https://www.londonstockexchange.com/news-article/HE1/tai-3-well-results/16215572
Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to announce that the Company has successfully completed wireline logging and downhole sampling at the Tai-3 well.
Highlights:
· Downhole fluid samples successfully recovered from reservoir intervals in the Upper and Lower Karoo Group confirm the presence of helium
· Complete wireline logs and initial petrophysical analyses demonstrate good quality reservoir sands in the Upper and Lower Karoo Group, interbedded with well developed shale prone seals; data recovered demonstrates a stratigraphic section, previously undrilled in the Rukwa Rift Basin
· Onsite pressure-volume-temperature analysis of downhole fluid samples have yielded helium concentrations up to 8,320 parts per million ("ppm") helium, which measure significantly above normal background levels of approximately 5ppm
· No Basement downhole samples were obtained as the wireline tools could not be run past 1,430m measured depth ("MD") due to washouts and ledges
· Tai-3 well has now been suspended for future operations that will involve drilling deeper into the Basement target, where an increase in helium shows were encountered whilst drilling
· Information and data obtained from the Tai-3 well results have provided a much greater understanding of the active working helium system in the region and a new well location on the Itumbula prospect has been identified as a result of these findings
· On completion of rigging down at Tai-3, the Company's drilling rig will be moved to the new Itumbula location where the iron rough neck and hydraulics will be repaired
· Upon completion of the repair and maintenance work, the Company plans to continue the drilling campaign
Lorna Blaisse, Chief Executive Officer, commented:
"These results are very encouraging indeed and we are delighted to have completed the Tai-3 well safely and to have been able to acquire a full set of wireline logs and downhole samples. This is an excellent result for the Company and a huge testament to the team's performance, especially given the challenges we have faced along the way.
Whilst disappointing that we were unable to run the wireline tools further into the Basement target at this time, given the increased helium shows we saw at this depth, we are confident that by casing the well and suspending Tai-3, we will be able to return at a later date and target the fractured Basement helium play which we believe to have significant potential.
We have continued to demonstrate that there is an established working helium system in the Rukwa Basin and the Tai-3 well has given us a fundamental set of geological learnings, which we now intend to apply to the Itumbula prospect.
Once Tai-3 has been rigged down we will move the rig to Itumbula where our primary focus will be on repairing the Predator 220 rig and, armed with valuable information and data gained from Tai 3, moving onto our second well of this drilling campaign on Itumbula."
pro_s2009
8 months ago
From seisprocessor on the other thread.
Apart from the mechanical breakdown delay, I’m delighted with the news that helium shows are present in both the Lake Bed and Karoo formations, as this de-risks the first two primary targets which are a lot different on the other side of the main fault.
Looking at the seismic data, the well intersects the Lake Bed formation at exactly the right place up-dip at the top of a sequence that looks a lot more prospective and better developed than on the other side of the fault (where the helium shows disastrously pinched out on a localized deposit on the previous Tai-2 attempt).
HE1 were never going to drill below TD into a 4 billion-year-old basement consisting of hard crystalline metamorphic gneiss, but discovering that their third target, the overlying fractured basement sediments come in 400m deeper than prognosis is actually a good thing for their third target zone, as it means a thicker zone with bits of disseminated gneiss in it, which will help to liberate more helium from the radioactive decay of the basement rock as well as having a higher pressure regime.
Far better that than coming in 400m shallower than expected!
With some limited well control provided by Tai-1, I was expecting a discrepancy of 100-150m in the depths at TD, but 400m just shows the risk in drilling based on 2D data vs 3D. The 2D data is more prone to error due to limited spatial sampling and consequently a greater number of assumptions made. The dipping strata and steep angle of the faults at the Karoo make imaging and migrating the data into the right place more difficult because while the velocity profile of the geology can be calculated fairly well going vertically, it varies a lot in the horizontal direction. There are ever more sophisticated Kirchoff and PSTM migration algorithms developed for handling these variations, but still a world of a difference between 3D and 2D derived velocities.
The Karoo formation is considerably more developed and thicker on the other side of the fault. With porosities already known to be around 20%, there’s good potential for flowing helium to the surface!
pro_s2009
9 months ago
Broker comments after the fund raise.
Liberum:
Helium One (BUY, TP 17p) – Successful placing to fund second well this year
HE1 has successfully raised gross proceeds of £6.8m (c.US$8.5m), through a placing and retail offering at 6.7p/share (c.10% discount to last close). The funds will enable the company to drill a second well this year, and at a significant saving without having to demobilise crew, personnel and equipment following the Tai-C well. This is an opportunity made available to HE1 following the recent rig purchase which otherwise would not have been a financially viable option.
Our take: Another positive development for HE1 underlining ongoing shareholder support ahead of its high impact drilling campaign later this month. The funds raised now enable the company to drill a further prospect immediately after the planned well at Tai-C. If successful, this well could transform HE1’s valuation given the wider implications of the helium market. Our model forecast that each 350,000 mcf/year train could generate c.US$55m in free cash flow per annum, assuming stable helium prices of c.US$300/mcf. With an export price of US$400/mcf, we calculate that each production train could generate US$75m. At the current share price, this represents >130% free cash flow yield on each 350,000Mcf/yr module. We reiterate our BUY rating reducing our TP slightly to 18p/share to take account of the equity dilution.
Sam Wahab, Sam.Wahab@liberum.com, +44 (0)20 3100 2095
SP Angel:
Helium One (HE1 LN) 6.35p, Market Cap £53m: Adds second well to programme
Helium has raised £6.75m in gross proceeds @ 6p/sh (~10% discount) to fund a second Rukwa Basin exploration well on the Itumbula prospect, to be drilled after drilling on the Tai-C well has completed.
The Company commented that it can move quickly onto a second well ahead of the wet season, which should enable cost savings by utilising the personnel and equipment used on the Tai-C well.
Helium’s rig ownership provides a platform to enable it to move quickly into an appraisal phase upon success at Tai-C, as well as allowing accelerated exploration on the Rukwa, Eyasi and Balangida projects.
The positive market response to the raise implies that catalyst-driven investors are now prepared to get involved in the upcoming test of the helium potential within the Rukwa Rift Basin. Helium One considers the drill-ready Tai structure to be the best-defined prospect within the Company’s portfolio and is fully funded for drilling to commence this month via a £10m fund raise last December, with the new funds raised providing the opportunity for a further prospect to be tested ahead of the fast-approaching rainy season in November that will likely bog down operations. With a new management team in place, the Company is now looking to make good on a commitment to shareholders to test the helium potential within the Rukwa Rift Basin onshore south-west Tanzania. However, the science around helium exploration is still in its infancy and we look towards the drilling results from Helium One and Noble Helium (NHE AU) in 4H23 to shed further light on the region’s potential helium prospectivity and commerciality
pro_s2009
10 months ago
https://www.londonstockexchange.com/news-article/HE1/operational-update/16081355
14 August 2023
Helium One Global Ltd
Operational Update
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 Phase II drilling programme.
Highlights
· Civils work on Tai-C well site and access road now completed
· Commenced mobilisation of equipment from lay down area to Tai-C well site
· Appointment of full drill crew at an advanced stage
· Company remains on track for a September spud
The civils work for the well site and access road has been carried out and completed by TNR Ltd ("TNR"). TNR have spent the past couple of months clearing, preparing, and constructing an 130m x 180m well pad that includes a concrete cellar to house the wellhead. The well pad has been constructed to include an area for the camp that will provide accommodation for rig crew and project personnel. The cementing component of the well pad has been approved and signed off by the Tanzania National Road Agency (TANROADS) under the Ministry of Works and Transport.
In addition to civils work on the drill pad, TNR have also cleared and prepared a 2.4km long access road to the Tai-C well site. This provides clear and accessible entry to the well site and camp.
The next steps include moving the rig and all its equipment safely to the well site in order to commence rigging-up the Predator 220. In parallel to this, the Company will select the remaining drill crew and prepare for the arrival of the camp, third party services equipment, and the last of the remaining long lead items.
Lorna Blaisse, Chief Executive Officer, commented:
"Helium One is now another step closer to commencing our drilling programme at Tai-C. We are very impressed with the high standard of work that TNR have carried out and we look forward to moving ahead into the next stage of the project. The team has been working incredibly hard and we will now commence the mobilisation of equipment onto the well pad and finalise the drill crew as we gather momentum ahead of the September spud."
pro_s2009
10 months ago
New video interview :
https://www.proactiveinvestors.co.uk/companies/news/1022880/helium-one-global-gearing-up-for-drilling-at-rukwa-1022880.html
Helium One Global gearing up for drilling at Rukwa
Published: 08:05 08 Aug 2023
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) CEO Lorna Blaisse and Director of Operations Mike Williams speak to Thomas Warner from Proactive London about the hard work currently underway at the London-listed helium exploration company's Rukwa project in Tanzania.
Blaisse delivers an update on preparations for exploratory drilling at the site, which include road upgrades and construction of the well pad, and highlights the significance of the recently-acquired and Epiroc Predator 220 drilling rig which she suggests is capable of drilling more than 2000m down, with the potential to encounter multiple helium shows.
She says "its a big operation, but its an exciting time and everybody's looking forward to this phase of the project that we've all been waiting so long for."
Director of Operations Mike Williams gives more detail about the drill rig itself, calling it the "right rig for the right project... we've picked a rig that is capable that is capable of drilling what we need to drill at Rukwa and our other areas of interest."
Blaisse suggests that the company is confident in the prospect's success, noting a recent independent Competent Person's Report that indicatea a potential resource of 2.8 BCF of helium, equivalent to $1.3 billion in the current market.
She explains that success could mean drilling more wells, testing different play types, and ultimately bringing the project to commercialisation.
pro_s2009
11 months ago
https://www.thisismoney.co.uk/money/investing/article-12357303/SMALL-CAP-IDEA-Helium-One-likely-turning-point-buying-drill-rig.html
SMALL CAP IDEA: Helium One at likely turning point after buying drill rig
By Alastair Ford, Proactive Investors, For Thisismoney.co.uk
Updated: 08:02 BST, 1 August 2023
Early in July, Helium One announced the acquisition of a drill rig.
The deal looks to be a game-changer for the company, and the market certainly thought so: shares in Helium One jumped by nearly 100 per cent (now 8.8p) on the news.
But that could be just a taste of things to come.
Ownership of the rig will allow Helium One to set its own terms when it comes to drilling the potential huge Rukwa project in Tanzania later this year.
Hitherto, rig availability has been tight, and getting the right kind of rig for the job has been even trickier.
Everybody recognised the challenges we faced in Tanzania getting an oil and gas type drilling rig,' says Lorna Blaisse, who was appointed chief executive of the company in February.
Prior to her promotion, Blaisse was Helium One's principal geologist, so perhaps more than anyone she knew what was at stake, following the mixed results of the first round of drilling.
'We knew that going into the second round of drilling we would need to have a robust rig,' she says.
'The sale of this rig came onto our radar a couple of months ago and we acted quickly.'
Previously Helium One had stated its intention to start a new round of drilling by the end of the third quarter of this year, and the acquisition means that that deadline will now be met.
The rig is due to arrive at site shortly, and the expectation is that the Tai-C well will be drilled in September.
Crucially, unlike the rig used in the last campaign, this new rig is one that was designed for use in the oil and gas industry.
The most obvious difference between this rig and a mining rig that was used before is that it is much more powerful.
The new Helium One-owned rig will drill the target reservoir section in standard 8.5inch hole, as opposed to the 3.5inch hole drilled in the previous round of drilling. It is a larger rig with a top drive system and, can therefore drill more efficiently.
The new rig is capable of drilling down to depths of between 2,000-metres and -2,400 metres, although the Tai prospect that Helium One is aiming for is reckoned to sit at around 1,200 metres.
The plan is to spend 30 days drilling, including logging and down-hole sampling, and then to wrap it up and assess the results.
All told, the results are likely to be far more conclusive. That will make a nice contrast to the earlier round of drilling, which lingered on for months as the company grappled with various issues associated with the mining rig it was using.
'We're anticipating a September spud,' says Blaisse.
'First we need to crew the rig, complete the civils work and prepare the wellsite.'
That work includes upgrading access roads and placing a camp close to the wellsite. But it won't take long.
The company is fully funded for the planned well, following a £10million fundraise in December last year, and there may even be enough for a second well, depending on outcomes.
'Fundamentally, we want to secure a discovery at Tai,' says Blaisse.
'The Tai-1/-1A well was very encouraging, although we weren't able to reach our total depth nor run a full set of wireline logs. We did have shows, but unless you've got wireline log data to determine pay zones, then you've no way of quantifying your results
The expectation is that this time round the drilling work will be far more definitive.
And if, as Blaisse hopes, Helium One does make a discovery, the potential scale is likely to be very significant.
At the end of May a competent person's report reckoned that there might be as much as 2.8billion cubic feet of helium at Tai alone, an amount that equates to around half of the current global demand.
There are other prospects too, in Rukwa, although Tai has consistently been identified as the lowest geological risk and highest chance of success.
Nevertheless, the titillating prospect remains that there could be even more helium under licence at Rukwa than even the competent person's report modelled.
But one thing at a time.
The key is to get cracking at Tai-C, and see how things develop from there.
If a discovery is made, investor interest is likely to be huge and the potential for a re-rating very high.
After all, the global demand for helium is at an all-time high, and Helium One is the primary helium explorer in Tanzania. Almost all the other helium that gets produced is produced as a by-product of hydrocarbons.
And if a discovery is made, how long would it take to move it to production?
The answer is: not too long. Tanzania has been a reasonably benign jurisdiction to operate in as far as Helium One is concerned, and the government is keen to secure a strategic position for the country as one of the major players in helium production.
So, changing Helium One's exploration licence to a production licence is reckoned to be a relatively straightforward process.
Production, says Blaisse, could come as soon as 18 months after a discovery.
So this is a company that could get very big, very quickly. Watch this space.
pro_s2009
11 months ago
Definitive results.......and enough for a 2nd well. Love it !!!
https://www.proactiveinvestors.co.uk/companies/news/1021239/helium-one-will-shortly-be-drilling-at-rukwa-and-this-time-with-its-own-specialist-rig-1021239.html
.......The plan is to spend 30 days drilling, including logging and down-hole sampling, and then to wrap it up and assess the results.
All told, the results are likely to be far more conclusive.That will make a nice contrast to the earlier round of drilling, which lingered on for months as the company grappled with various issues associated with the mining rig it was using.
“We’re anticipating a September spud,” says Blaisse.
“First we need to crew the rig, complete the civils work and prepare the wellsite.”
That work includes upgrading access roads and placing a camp close to the wellsite. But it won’t take long.
The company is fully funded for the planned well, following a £10mln fundraise in December last year, and there may even be enough for a second well, depending on outcomes.
“Fundamentally, we want to secure a discovery at Tai,” says Blaisse........
pro_s2009
11 months ago
Related to Noble, but good background info........
https://mining.com.au/the-rise-of-helium-a-critical-raw-material-and-not-just-a-party-balloon-filler/
The rise of helium: a critical raw material and not just a party balloon filler
The helium market is on the rise and that’s not just hot air.
The global wholesale helium market size is expected to grow from an estimated US$5 billion in 2023 to more than US$8 billion in 2030 at a CAGR of 6.6%.
AKAP Energy, which provides strategy and financial consulting advice to energy companies, says in a recent report that the growth trajectory of helium is in line with other niche energy transition commodities such as lithium and cobalt.
The AKAP Energy report says: “These commodities have seen exponential price growth on the back of significant supply squeezes – similar to what is being seen in the helium space. What was interesting is that many industry analysts viewed these increases as unsustainable, however today these commodity prices remain high. In our view helium is in a similar situation with a squeezed supply and demand continuing to grow with new primary helium discoveries required to meet the expected increase in annual demand from 6Bcf to 8.5Bcf by 2030.”
Unlike other commodities, there is virtually no available storage for helium. Helium exploration is a nascent industry and is typically hard to mine. However, the price of the colourless, odourless, and tasteless element is surging with transition to market pricing, significant demand growth, and fragile supply.
The long-term bulk wholesale liquid helium price is US$450/Mscf – 50 times the price of LNG.
Helium constitutes about 23% of the mass of the universe and is second in abundance to hydrogen in the cosmos. Yet at present, more than 95% of the world’s helium is produced as a by-product of the processing of hydrocarbon-bearing gas.
Because it is very unreactive, helium is used to provide an inert protective atmosphere for making fibre optics and semiconductors and for arc welding. It is also used to detect leaks, such as in car air-conditioning systems and because it diffuses quickly it is used to inflate car airbags after impact.
Rising demand and constrained supply are fuelling growth prospects within the global marketplace, particularly for cleaner ‘green helium’ sourced from non-carbon environments.
Rising demand and constrained supply are fuelling growth prospects within the global marketplace
Helium is typically sold as raw product grading 50-80% and is then further processed into Grade A helium. It is often shipped as liquid to distribution centres and sold as bulk liquid helium or gasified and compressed into tanks or small cylinders for delivery to end users. Cargoes are usually sold at a 99.999% purity or Grade 5.
AKAP notes that strong helium pricing is encouraging global exploration, as well as being closer to the higher growth end-user markets in Asia. In 2023 the company sees the most significant new helium production and highest impact exploration coming from Africa.
Dual-listed Renergen (ASX:RLT) has recently started up its helium production facility in South Africa, while AIM-listed Helium One Global (AIM:HE1) has a large primary helium prospect in Tanzania.
The rise and rise of helium
One emerging player in Africa is Noble Helium (ASX:NHE), which has assets in Tanzania.
Speaking to Mining.com.au on the sidelines of the 2023 Gold Coast Investment Showcase this week, Noble Helium (ASX:NHE) cofounder and CEO Justyn Wood says his company is answering the world’s growing need for a primary, ideally carbon-free, and geopolitically independent source of helium.
“It’s not just a party balloon filler. It’s actually a critical raw material with a really fragile supply chain”
“It’s not just a party balloon filler. It’s actually a critical raw material with a really fragile supply chain. That needs something like what we’re doing to help stabilise it. And it’s fundamental to the future technologies that we’re all looking forward to like AI, and it can’t happen without helium.”
Wood tells this news service that smartphones would not exist without helium.
“The chip in your phone that you’re currently recording on can’t be made without helium anymore. And the fibre optic cables that connect all of the continents can’t be made without helium.”
The CEO adds that about 20% of the world’s helium goes into making MRI machines function, however “the coming AI revolution” and the demand for semiconductor chips is fuelling the sector’s growth.
“NASA is a major consumer,” Wood adds.
Strategic assets
There are a growing number of early stage and advanced helium projects scattered across the world.
Located along Tanzania’s East African Rift System, Noble Helium’s 4 projects are being advanced according to the highest ESG benchmarks to serve the increasing supply chain fragility and supply-demand imbalance for this scarce, tech-critical and high-value industrial gas.
Its flagship North Rukwa Project has an independently certified, summed un-risked mean prospective helium resource of 176 billion cubic feet (equivalent to about 30 years’ supply). The project lies within the Rukwa Basin, which has the potential to be the world’s third largest helium reserve behind the US and Qatar.
Noble Helium’s Wood tells Mining.com.au that the company remains on track to drill its first 2 wells at its North Rukwa Project in Tanzania in Q3 2023. The wells will target structures with a combined mean prospective helium resource of 16.5Bcf within the East African Rift System. Both wells are Basin Margin Fault Closure (BMFC) plays.
To date, BMFC plays have a proven 100% discovery rate from 14 oil and gas exploration wells in other basins of the East African Rift System in Uganda and Kenya. Additionally, it has commissioned the first ever Helium Atlas, with an exclusive 5-year agreement allowing the company to identify additional prospective areas to target for diversification.
On 14 June, Noble Helium received a major vote of confidence from the Tanzanian government with the renewal of 6 exploration permits at its North Rukwa Helium Project by the Tanzanian Mining Commission. The prospecting licenses were awarded an initial 4-year term in 2019 and were due to expire in July 2023. As per the mining code, the next term is for 3 years with the facility to extend to a third term of an additional 2 years.
The company has the right under the Tanzanian Mining Act to convert its prospecting licenses to mining licences following discovery.
Helium One is another player in the market and is currently the primary helium explorer in Tanzania. It recently completed an independent verification of the prospective resources at its Tai Prospect. The company says it 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.
Meanwhile, Blue Star Helium (ASX:BNL) is another independent helium exploration and production company, headquartered in Australia, with operations and exploration in North America.
In an 8 June company announcement, Blue Star Managing Director and CEO Trent Spry says the company is validating its commercialisation model.
“While our maiden Voyager development is the focus for our operations team targeting Q4 first helium, work continues in parallel on the exciting Galactica/Pegasus project where the company had 4 successful discoveries over the 2 prospects in 2022 and moved into development planning.
Galactica/Pegasus is a larger scale project, and we are pleased that 3 more well locations have been approved. With 4 wells already approved this will soon bring the development well inventory to 7 with an additional 4 already proceeding through the Oil and Gas Development Plan (OGDP) process and a further 20 wells in various degrees of permitting readiness.”
Spry says Galactica/Pegasus development planning is advancing with a range of commercialisation pathways under consideration, including an initial leased plant and third party operated option with expansion expected to include a potential CO2 by-product stream.
“The third-party owned Red Rocks helium project adjoining Galactica recently commenced selling helium into the market from 2 wells, via an IACX-operated helium recovery plant. Not only does this project demonstrate the expected viability of our Galactica project, it also validates the broader commercialisation model of Blue Star’s chosen development pathway at Voyager.”
pro_s2009
11 months ago
https://www.chemanalyst.com/Pricing-data/bulk-helium-1100
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Helium prices in the North American region inclined on account of tight supply availability of the product. Helium shortage continued to impact the overall prices sentiments of Helium along with fluctuating prices of its upstream (natural gas) in the regional market. Facets such as the US bank crisis, along with incline demand for the product, proportionally impacted the overall market dynamics of Helium. Towards the quarter end, Helium prices soared as the demand for the product in the international market inclined. North American Helium Inc announced that it successfully brought in two additional helium purification plants.
APAC
During the first quarter of 2023, the price dynamics of Helium in the Asian market soared in the domestic market. Despite falling natural gas prices, there was a shortage of the product on the worldwide market, resulting in rising Helium gas prices. Due to a lack of supply for the product in India, tilted imported prices influenced the final pricing. Helium prices rose sharply towards the quarter end as the supply chain remained uneven and transit times increased. The Indian healthcare industry, as well as semiconductor manufacturing, demonstrated a higher demand for the commodity. Helium is a significant component in the smooth operation of MRI equipment, which plays an important role in diagnostics.
Europe
Helium prices in Europe fluctuated during the first quarter of 2023 due to fluctuating natural gas prices on the worldwide market. Increased energy prices, as well as a disrupted supply chain, influenced final prices. As a result of the Russian government's implementation of sanctions, there was a shortfall of natural gas available on the European market in Q1. The primary cause driving up the price value was stagnant demand in the automobile, healthcare, and other industries, as well as inconsistent supply from end-use manufacturing facilities.
pro_s2009
11 months ago
https://finance.yahoo.com/news/helium-global-market-report-2023-183200924.html
Major players in the helium market are Airgas, Air Liquid, Linde, Messer Group, Air Products, Gazprom, Gulf Cryo, Matheson Tri-Gas, Exxon, Praxair, and Buzwair. The global helium market will grow from $4.45 billion in 2022 to $5.03 billion in 2023 at a compound annual growth rate (CAGR) of 12.9%................
pro_s2009
11 months ago
https://finance.yahoo.com/news/helium-global-market-report-2023-183200924.html
Major players in the helium market are Airgas, Air Liquid, Linde, Messer Group, Air Products, Gazprom, Gulf Cryo, Matheson Tri-Gas, Exxon, Praxair, and Buzwair. The global helium market will grow from $4.45 billion in 2022 to $5.03 billion in 2023 at a compound annual growth rate (CAGR) of 12.9%................
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