Are the Helium One Global claims all just hot air?
“…With every set of data, we’re getting closer and closer to that discovery…”
With a licence area of 3 and a half thousand kilometres in Tanzania, Helium One is developing the Rukwa project said to be the ‘largest known primary helium resource in the world.’
That was the language being used pre-the December 2020 IPO. The language used now is slightly tempered with regulatory news statements from the company now referencing Rukwa as ‘the world’s premier basin for helium exploration.’
So does that mean the resource of the magnitude once heralded just isn’t there and to borrow a helium pun, the claims were just hot air?
“Not at all,” says Chief executive David Minchin who insists the claims are still valid, and the risk and exploration has now been reduced significantly at the Rukwa basin. What the 2021 drilling campaign revealed was a working helium system which tantalisingly and maddeningly stopped short of flowing gas to surface.”We have strong indications of gas. In fact I’m confident to say that we did discover gas, however we weren’t able to flow it to surface, so I’m not able to say things like proven or identified. It’s indicative and pointing towards.”
“When we started drilling we had no concept that we’d have shallow plays. We had no concept that we’d have helium all the way from basement all the way up nearly to surface. This is an incredible result.”
Minchin talks about the team working tirelessly at a time when there is a critical shortage of helium. There’s no ‘off switch’ for the company which is mobilising seismic before the rainy season starts in under two months time. “These shortages in helium are going to keep coming up again and again and again until new flexible sources are able to be found, and I can’t wait to be part of a process that solves this problem.”
Listen to David talk to Sarah Lowther about how he can literally taste the helium which is “tantalisingly close,” why he and the Chairman recently topped up their shareholdings and why the current share price is “hard to ignore.”
Watch David talk to Proactive UK’s Katie Pilbeam as they discuss the completion of the recent drilling campaign.
Access Hannam&Partner’s June research note
Read the latest written article from @TMSreach here
Follow the company on Twitter – @Heliumone1
The author was remunerated but does not hold shares in the company