Helium One Global Limited (LON:HE1), the primary helium explorer, has announced its unaudited condensed and consolidated results for the six months ended 31st December 2021.
Within the period
· Completion of 2021 Drilling Campaign identifying a working helium system in the Rukwa Basin
· Completion of 220 line kilometre of Phase II 2D Seismic acquisition over the northern extensions of Tai and Itumbula structural highs
· Net cash balance as at 31 December 2021 of $9,729,864 (30 June 2021: $15,802,111)
Subsequent Events
· Completion of a multispectral satellite spectroscopy study with identification of multiple surface helium anomalies at Rukwa, Eyasi and Balangida project areas
· Completion of QEMSCAN study providing further data to provide information on reservoir quality, mineralogy, seal potential and grain size distribution
· Completion of ERT study to aid our technical understanding of potential shallow gas accumulations
· Ongoing interpretation of 2D seismic has identified multiple new areas of interest additional to our existing prospect portfolio
· Advanced discussions with a leading global drilling company for the provision of a containerised rig solution for drilling within the 2022 drilling season
David Minchin, CEO of Helium One commented:
“We are pleased to report these interim results which demonstrate that Helium One has maintained a commitment to cost effective exploration, while providing significant de-risking over the Rukwa basin. Our 2021 drilling campaign delivered ‘proof of concept’ by demonstrating the occurrence of subsurface helium within a working helium system. This gives us the confidence to push ahead with additional exploration and mobilise a conventional oil and gas rig for our 2022 campaign.
“Our 2022 drilling campaign is supported by an integrated subsurface database pulling together information from 2D Seismic, multispectral satellite spectroscopy (“MSS”), electrical resistance tomography (“ERT”), airborne gravity gradiometry (“AGG”) and QEMSCAN analysis to provide a powerful predictive tool for the ranking of prospects. The subsurface team have already identified multiple areas of interest for follow on work which are additional to our current prospect portfolio.
“The Company remains in advanced negotiations with a leading global drilling company and is committed to the provision of a rig solution for our 2022 drilling campaign. We have multiple rig options and our Principal Drilling Engineer is currently travelling to perform an in-person assessment of appropriate rigs.”
CEO’s Statement
Helium One is pleased to report on an active six-month period ended 31 December 2021 which has delivered significant de-risking of our flagship Rukwa project. Helium One has delivered an aggressive exploration programme culminating in the milestone events of the Company’s maiden exploration wells drilled on the Rukwa Project in Tanzania – the first drilling campaign in Africa to target primary helium.
The work undertaken in 2021 has provided proof of concept and has enabled us to reduce exploration risk across the Rukwa Basin. The drilling carried out on the Tai prospect demonstrated a working helium system with good to excellent-quality reservoirs, thick sealing units, and helium gas shows at multiple prospective intervals.
The Company has now moved on to Phase II exploration, building an integrated subsurface database to deliver a successful drilling campaign in 2022. Aspects of the Phase II programme completed during the period have included:
· Completion of a 220-line kilometre 2D seismic campaign in December last year, designed to target the northern extensions of known structural highs believed to act as a charge focus for helium migration.
And post the period end:
· Completion of a multispectral satellite spectroscopy study over our entire 4,512km2 licence area with identification of multiple new surface helium anomalies
· Completion of an ERT survey, again post year end, to identify resistivity anomalies within the ultra-shallow zone (<200m), enabling a better understanding of near surface geology and potential for shallow gas accumulations.
· The completion of QEMSCAN study on drill cuttings collected from the Tai-1/-1A wells to provide information on reservoir quality, mineralogy, seal potential and grain size distribution across the entire sedimentary sequence.
The ongoing interpretation of the Phase II 2D Seismic data has identified multiple areas of interest at both the Lake Bed and Karoo Group levels. The area surveyed was not previously covered by historic 2D seismic, so newly identified closures will be additional to the Company’s current prospect portfolio.
The Company intends to complete additional work on these areas of interest to identify drill-ready prospects. This will be done through ongoing 2D Seismic interpretation, integrating data from Airborne Gravity Gradiometry, Multispectral Satellite Spectroscopy, Electrical Resistance Tomography, and QEMSCAN data. This information will feed into risk weighting and volumetric analyses which will, in turn, inform prospect prioritisation ahead of our planned 2022 drilling campaign.
Helium One is in advanced discussions with a leading global drilling company for the provision of a containerised rig solution and remains committed to securing a suitable rig for drilling at Rukwa within the 2022 drilling season.
Management
Over the past six months the Company has further strengthened its operational and technical teams as well as adding significant industry experience to the Board of Directors.
The appointment of Nigel Friend as non-executive director in March 2022 brings significant industry experience to the Board of Helium One. Over his career Nigel has developed extensive expertise in successfully growing companies through a clear focus on cash generation and has spent more than 35 years working in the oil and gas industry and corporate finance.
The addition of Colin Ivory as COO, Chris Eyre as CFO, Mark Beeson as Consultant Geophysicist, Mike Williams as Principal Drilling Engineer, Owen Hughes as Senior Operations Geologist, and Sam Girling as Principal Geophysicist, bringing very significant experience in successful gas exploration. In conjunction with the board, this seasoned group of professional gas exploration experts cover a range of crucial areas that have significantly added to the intellectual resource of the Company in order to deliver Helium One’s strategy and objectives in 2022.
Financials
For the six-month period ended 31 December 2021 the Group reported an unaudited pre-tax loss of $1,792,648 (six months ended 31 December 2020, unaudited restated loss: $3,532,686). The loss for the period ended 31 December 2020 included an impairment charge of $2,277,196 which related to the impairment of assets acquired in the amalgamation with Attis Oil and Gas Limited. The Company continues to be well funded with cash balances totalling $9.7 million as at 31 December 2021.
Outlook
The year ahead promises to be a busy period for the Company with Helium One in a strong position to deliver another ambitious exploration programme. The Company remains well financed with a strong management team to deliver a discovery within the significantly de-risked Rukwa basin.
I would like to take this opportunity to thank all our stakeholders for their continued support and look forward to providing further updates as we continue to deliver our exploration programme.
David Minchin
CEO
28 March 2022
