Helium One Global shares soared on Thursday after announcing upbeat results from its helium drilling campaign in Tanzania.
Helium One Global today provided an update on drilling operations at its Itumbula West-1 well in Tanzania, announcing it has encountered “elevated helium shows” at multiple target depths.
The well reached its target depth of 961 meters in basement rock on 24th January after passing through the Lake Beds Formation, Red Sandstone Group, Karoo Group and other targets. The company reported helium shows over 20 times above background levels while drilling through these zones.
Helium One Global shares were over 60% higher at the time of writing.
Helium readings increased in frequency and concentration in faulted zones encountered during drilling, likely due to the migration of deeply sourced fluids along the faults liberating the helium, Helium One said.
In addition to helium shows, the well also hit high concentrations of hydrogen in the Lake Beds Formation. Elevated hydrogen continued in the Karoo Group and basement.
Wireline logging operations are now underway for further evaluation. This will be followed by drill stem testing across the faulted zone and other zones of interest. Helium One said it remains excited by the initial results and will provide further updates once testing is completed.
Although today’s news has been taken well by the market, it may have come too late for some longer-term holders who have suffered multiple delays and dilutive placings that have eroded shareholder value.
