Helium One’s (LON: HE1) share price is down on Monday, despite the news that it has identified helium-enriched gas in drilling mud in the Lake Bed Formation while drilling Tai-1 well Rukwa Project in Tanzania.
The company said Helium shows were identified in shallow strata from 70.5 metres, while micro-gas chromatograph showed helium concentrations of up to 22,084ppm (2.2%) in gas recovered from drilling mud.
Drilling operations will continue to the base of the Lake Bed Formation, which is anticipated to be at 400 metres.
David Minchin, CEO of Helium One, commented: “We are very excited to have identified the presence of helium in drilling mud from very shallow depth. Drilling will now continue to the base of the Lake Bed Formation at which point we will run wireline tools to obtain more detailed formation evaluation.
“Although concentrations of 2.2% He are encouraging indicators of free gas, it is important to note that a helium show is not evidence of commerciality and further evaluation is required by wireline logging to confirm any potential pay zones.
“It is also important to note that gas concentrations encountered in mud logging are qualitative rather than quantitative and in-situ grade may be higher or lower than what is measured.”
Helium One shares are currently trading at 17.72p, down 2.43%. HE1’s stock price had reached a high of 19.5p earlier in the session.
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