Helium One Shares Surge Following Promising Rukwa Project Update

Helium One Global (AIM: HE1) is experiencing a continued surge in its share price on Monday, up well over 20% in early trading, following a positive update on its southern Rukwa Helium Project in Tanzania.

The announcement centers on the successful completion of Electrical Submersible Pump (ESP) testing at the ITW-1 well, which demonstrated enhanced flow rates and supports the company's strategic farmout process.

The ESP testing program achieved flow rates of up to the equivalent of 16,400 barrels per day (bpd) of water over a 20-day period. This represents a six-fold increase compared to the natural flow observed during the 2024 Extended Well Test (EWT). Sustained helium concentrations reached 5.4% (air corrected), with a peak of 9.2% (air corrected) at the surface.

Gas water ratio (GWR) measurements averaged 0.06 m3/m3 (0.05 Sm3/Sm3 corrected for stp) with a peak of 0.1 m3/m3 (0.08 Sm3/Sm3 corrected for stp) during continuous flow. Pressure measurements taken after shut-in indicated encouraging reservoir support. The company intends to commence a strategic farmout process to identify a suitable industry partner to further advance the project.

The successful ESP testing program is a key operational milestone for Helium One, demonstrating the production potential of the Rukwa project. The achieved flow rates exceeded expectations, and the sustained helium concentrations align with anticipated ranges. While the gas water ratio was at the lower end of the expected range, the results provide valuable technical insight.

Chairman James Smith commented that the operational success provides a strong foundation for discussions with potential industry partners and seeking external investment. The company intends to commence this process imminently, and the Board looks forward to updating shareholders as the project advances towards commercial development.

CEO Lorna Blaisse emphasized that the ESP has effectively demonstrated the ability to produce over 16,000 bpd while maintaining consistent helium concentrations and managing water disposal. To further increase understanding of the Basement fault and fracture play, where there is potential to increase GWRs and helium concentrations, the company will commence a strategic farmout process.

The ESP testing program involved over 450 hours of operation with zero maintenance or downtime. The well flowed at an average rate of 15,000 bpd, utilizing a maximum pump frequency of 55 Hertz. The data suggests that isolation of the Basement reservoir was not fully achieved due to the nature of the Karoo reservoir connectivity.

Temperature and salinity measurements suggest potential dilution from a shallower Karoo aquifer, which may have lowered the overall GWR and helium concentration. The well produced the equivalent of 250,000 barrels of water during testing, with no loss of helium concentrations.

The company will evaluate the test results to increase its understanding of the sources and interaction of helium-enriched fluids. This will require further drilling and testing, likely focusing on primary fractured Basement targets at other locations within the Mining Licence area.

The company believes that now is the appropriate time to seek third-party financing to assist with the development of the southern Rukwa Helium Project. The formal farmout process will identify and select a suitable industry partner.