Helium One Global, the primary helium explorer in Tanzania, is pleased to announce that drilling at the Itumbula West-1 well commenced on 06 January 2024.
Highlights
· Drilling has commenced at the Itumbula West-1 well
· Targeting two major fault zones and the Karoo Group
· Geolog undertaking mudlogging whilst drilling to monitor helium gas shows
· Portable mass spectrometer and field pressure-volume-temperature specialist on site to measure and validate helium gas shows as well as downhole samples
· Downhole reservoir testing equipment has been mobilised internationally to perform open hole well testing and fully evaluate the fault zones
· Baker Hughes, energy technology company, continue to provide third party services for wireline, fluids and cementing
· Part relinquishment of Prospecting Licence ("PL") 10704/2015 in the Balangida Rift Basin, following an internal license review completed earlier last year, now ratified by Tanzanian Government
Background and further information
Following the successful instalment of the new iron rough neck and completion of the hydraulic repairs, the Itumbula West-1 well was successfully spudded on 06 January 2024. The Company is currently cementing the 20" conductor ahead of drilling the 17.5" hole section.
Following the drilling of the Tai-3 well and acquisition of valuable data, the two primary objectives of this well are to target and evaluate the fault system as well as the conventional Karoo play, both of which are anticipated to yield helium. Therefore, in addition to the conventional mudlogging and wireline procedures that were undertaken on Tai-3, the Company also aims to perform an open hole well test in both the fault zones and Karoo targets on Itumbula West-1. Whilst drilling, the Company will be measuring gas shows using Geolog's mudlogging services and a portable mass spectrometer.
Once the wireline logs have been run and evaluated, the Company will also have the option to take downhole samples under reservoir conditions using Baker Hughes' Reservoir Characterisation Instrument tool. The Company will be able to transfer and evaluate these samples onsite, as well as sending duplicate samples for laboratory analyses at a leading noble gas laboratory.
The whole process from spud to completion of logs and well testing is expected to take approximately four to five weeks.
The Company continues to engage with the University of Dar es Salaam, who have appointed a member of staff from their Department of Geosciences to be involved with this well in order to gain valuable experience in what continues to be a flagship project in Tanzania.
Licence update
Following a license review early last year, the Company applied for a part relinquishment of PL 10704/2015 in the Balangida Rift Basin. The 125km2 area selected for relinquishment was based on the following:
· area with no, or poorly, defined exploration leads; and
· area on outcropping basement i.e. no sediment fill and therefore deemed to be non-prospective
This part relinquishment has recently been ratified by the Tanzania Mining Commission and the area retained is based upon the following criteria:
· a prospective area supported by gravity-magnetic data, known surface helium seeps, multispectral satellite spectroscopy data and soil gas surveys
Helium One now holds a PL footprint in the Balangida Rift Basin totalling 134km2. All other PLs remain unchanged. Total area of PLs now held by Helium One Global is 2,840km2 .
Lorna Blaisse, Chief Executive Officer, commented:
"We are delighted to have spudded the Itumbula West-1 well. This prospect demonstrates the potential to yield some positive results and, having the ability to both drill and test a fault play, provides us with every opportunity of giving it the best chance of a successful outcome. We look forward to making further announcements in due course as we drill, log and test the well."
