Helium One Global shares surged on Monday after announcing encouraging results from its Itumbula West-1 well in Tanzania, with high concentrations of helium and hydrogen gas detected during drilling.
Helium One shares were trading 92% higher at 2.65p at the time of writing.
The company reported helium levels of up to 4.7% during drill stem tests in the well’s basement rock. This concentration is nearly 9,000 times above normal background levels.
Hydrogen was also found at 2.2% concentration in the basement – over 37,000 times higher than usual.
Analysis of downhole fluid samples from three well test intervals confirmed the presence of elevated helium. Duplicate samples will be sent to a second lab for further analysis.
Temperatures exceeding 80°C were recorded in the basement and across fault zones, indicating potential for helium and hydrogen generation. The company said these hot basement fluids are consistent with a low enthalpy geothermal system.
The company also highlighted improvements in drilling performance, with non-productive rig time reduced by over 350% compared to its previous well.
“We are delighted with the findings from Itumbula West-1 and the results from the down hole well testing have clearly confirmed the presence of a producing helium province in the Rukwa Rift Basin. The learnings from the Tai-3 well provided invaluable additional subsurface information and how the helium system works. By applying these findings, we adjusted our well location at Itumbula, and this has certainly yielded the results we were hoping for and justified that decision,” said Lorna Blaisse, Chief Executive Officer at Helium One.
“Flowing helium to surface in such high concentrations is a huge milestone for the Company and we will now fully evaluate these results and focus on advancing this project in the most effective way possible; one that will aim to achieve commerciality at the earliest opportunity.
“This drilling campaign has been a huge success for both the Company and for Tanzania. I would like to thank all of those involved in bringing the project to this point of success – especially to our in-country teams and for the continued support from the Ministry of Minerals and the Mining Commission of Tanzania, as well as the local communities where we operate.
“We look forward to providing further updates as we fully evaluate the results and outline how we are planning the next steps to advance the project.”