Helium One shares sank on Monday as the company announced further downbeat developments in their Tanzanian drill campaign.
The helium explorer has faced ongoing challenges this year with issues securing the appropriate equipment for their planned drill campaign. Today, the company announced an unfavourable outcome in the evaluation of the Tai-3 well.
Although Helium One successfully recovered downhole fluid samples confirming the presence of helium at its Tai-3 well, the company was unable to obtain basement samples as tools could not run past 1,430 meters due to washouts. The well has now been suspended for future deeper drilling into the basement target.
Investors will be encouraged by the presence of helium at the prospect, but challenges during the drill campaign ultimately left shareholders disappointed.
Helium One shares were down around 30% at the time of writing.
Samples yielded helium concentrations up to 8,320 parts per million (ppm), significantly above normal background levels of around 5ppm.
Wireline logs and petrophysical analysis demonstrated good quality reservoir sands in the Upper and Lower Karoo Group, interbedded with shales. No zones of interest were found in the Lake Beds or Nsungwe Formation.
A new location on the Itumbula prospect has been identified for the next well.
Helium One has been dogged by issues with rigs and drilling equipment this year, and today’s update revealed additional repairs are required before the drilling campaign can continue. Upon completing repairs, Helium One plans to continue its drilling campaign at the Itumbula prospect.