The Helium One Global Ltd (LON: HE1) share price fell 2.95% after the company began its drilling campaign at the Tai-3 well earlier today. The lack of enthusiasm from investors can be attributed to the significance of the drilling campaign, given the failure the company encountered during phase 1 drilling..
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Investors following Helium One for a while will remember that its first drilling campaign at the Rukwa Project in Tanzania failed and did not yield any helium reserves. However, the company has taken measures to increase the likelihood that its second drilling campaign will be successful.
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The company intends to hit a total depth (TD) of 1,100 metres approximately two weeks from the spud date. The drilling campaign targets the Karoo Group, Lake Bed Formation and the Basement. The company will also undertake mudlogging whilst drilling to monitor helium gas shows.
Helium One will also have a portable mass spectrometer to measure and validate any helium gas shows encountered during drilling. The company has also hired Baker Hughes wireline equipment and personnel onsite, with their equipment being tested ahead of running the wireline once the well has reached TD.
The company expects to reach TD in two weeks but will take another two weeks to complete the evaluation of logs and collect downhole samples. The company will make another announcement once it has reached total depth (TD).
Lorna Blaisse, Helium One’s CEO, commented: “This is a huge and very exciting milestone for the Company. The operations that we are undertaking are a significant shift in both scale and approach from what we undertook in Phase 1. The team has worked exceptionally hard to reach this point, and we are focused on delivering a safe and successful drilling campaign.”
“By adopting an oil & gas best practice approach to this drilling campaign from drilling, logging and sampling right through to HSE guidelines and procedures, we are giving ourselves the best possible opportunity to deliver success at Tai-3. We look forward to providing further updates once TD has been achieved and the logs and initial analyses have been completed.”
Helium One (HE1) share price.
The Helium One share price fell 2.95% to trade at 6.25p, from Friday’s closing price of 6.44p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.