The Helium One Global Ltd (LON: HE1) share price surged 46.1% after announcing that it had acquired an Epiroc Predator 220 drilling rig, which was currently located in Tanzania and was being mobilised to the Rukwa site.
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The news comes just days after the company issued a notice of rectification to SOFORI due to the numerous delays in mobilising a drill rig for Helium One, as outlined in Friday’s news release. The company has now terminated its association with SOFORI following today’s events.
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Helium One is now the proud owner of an Epiroc Predator 220 drilling rig, whose long lead parts, such as bottom hole assemblies, drill bits, casing and drill pipe, are compatible with the same parts ordered by the company for the Drillmec HH102 rig, which SOFORI was supposed to supply.
Investors cheered the news, given that Helium One bought the drill rig outright instead of leasing it like many exploration companies do. Buying the drill rig means it will always be within the company’s reach, speeding up the drilling process at all stages.
The Epiroc Predator 220 drilling rig will drill the Tai-C well in Q3 2023 with a target September spud date. By owning the rig, Helium One can quickly move into an appraisal phase upon success at Tai-C, allowing for accelerated exploration of the Rukwa, Eyasi and Balangida projects.
The primary helium exploration company noted that it had started Civils work on Tai-C well pad and was already building access roads. The company has also enlisted the services of Baker Hughes regarding the wireline, cementing and fluids.
Lorna Blaisse, Helium One’s CEO, commented: “We are delighted to finally have reached this significant milestone of securing a rig for our Q3 drilling programme in Rukwa. This enables us to execute on what we set out to do and drill the Tai-C well. Having acquired a rig which is now in country, as well as civils and well pad preparations underway, we are on track for a Q3 spud date, and we can now move forward and focus on executing a safe and successful drilling programme.”
*This is not investment advice.
Helium One (HE1) share price.
The Helium One share price surged 46.08% to trade at 7.45p, from Friday’s closing price of 5.10p.
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