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Helium One (LON: HE1) announced on Monday that it has commenced its exploration drilling programme at the Rukwa Project in Tanzania.
Drilling is underway at the Tai prospect, which according to the company, is a ‘must drill' three-way dip closure, upgraded by its recent 2D infill seismic. The prospect was chosen as the first well due to stacked targets within a well-defined structural closure.
Helium One is planning a three well programme targeting shallow structures near the Itumbula Helium Seeps. Each well is intended to test a different trapping style, providing information essential in de-risking the company's portfolio of prospects across the basin.
The exploration drilling includes a micro gas chromatograph and mini mass spectrometer used to identify elevated helium levels in mud, wireline logs to identify reservoir and seal units, and a drill stem testing unit to attempt to flow helium gas samples to the surface.
“The exploration programme is the culmination of five years of dedicated work with three holes testing three different styles of trap. Each well will take roughly one month to complete with lessons learnt from the first well applied to refine and de-risk drilling of subsequent wells,” said David Minchin, CEO of Helium One.
“Establishing a drill programme in the midst of a global pandemic is not without challenges and we are thankful to all Mitchell Drilling and Helium One team for their hard work in bringing this project to fruition,” added Minchin.
Helium One's share price is currently down 2.66% at 20.85p.
Helium One shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Helium One shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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