Helium One Global is preparing to commence an extended well test (EWT) at its Itumbula West-1 well in the Rukwa project area, the company said in an operational update on Monday.
The company plans to deepen the existing well and begin the EWT in July, marking a crucial phase in evaluating the commercial potential of its fault-fracture helium play.
Helium One Global shares were 5.90% higher at the time of writing.
The company-owned drilling rig is already on-site, awaiting third-party services to begin setup. Helium One have had problem with drill contractors in the past – using their own drill rig should help operations run a little smoother than previous campaign.
Helium One has bolstered its capabilities by acquiring well control equipment to complement the rig. An experienced drill crew has been appointed, with many returning from the previous drilling campaign, ensuring operational continuity and efficiency.
Helium One has a history of delayed drill programme that led to declines in the group’s shares so investors will be happy to hear, in preparation for the July spud date, long-lead items are arriving at the site, and camp personnel and medical support are being remobilised.
“As we fast approach the next operational phase, we are on track to commence the crucial EWT operations at Itumbula West-1 in July. This is a very exciting time for the Company as the test will enable us to determine commercial flow rates, reservoir performance and helium concentrations over a longer period of time. The results of this EWT will enable us to better determine resource estimates and fully evaluate the potential of this new fault-fracture helium play we have at Itumbula,” said Lorna Blaisse, Chief Executive Officer.
“The team has remained focused over the past few months to meet the timelines, including the ordering and delivery of long lead items, integrated subsurface modelling and engineering in order to form the basis of a feasibility study which will be required to apply for a Mining Licence to enable us to move into project development once the EWT is complete.”
The company has contracted global technology firm SLB (formerly Schlumberger) to provide cementing, drilling and completion fluids services, as well as surface well test equipment. GeoLog International BV will return to the project to provide mudlogging services.
The EWT is expected to last 4-6 weeks and will target two zones where helium was successfully sampled during the initial exploration well: the fractured Basement and faulted Karoo intervals. This test aims to determine commercial flow rates, reservoir performance, and helium concentrations over an extended period. A Production Logging Tool will be employed to gather more specific production data at predefined depths.
Laboratory results from helium samples taken from Itumbula West-1 have corroborated the measurements made by the onsite field PVT laboratory, adding confidence to the project’s potential. Additionally, the second phase of fieldwork for the Environmental and Social Impact Assessment study, required for the feasibility study, is ready to commence.
