Shares in Helium One Global Ltd (AIM: HE1) soared this morning following two announcements related to their USA and Tanzanian operations.
The company, which also holds a 50% working interest in the Galactica-Pegasus helium project in Colorado and operates the southern Rukwa Helium Project in Tanzania, saw its shares jump over 20% on Monday after releasing developments for both assets.
The first announcement confirmed successful drilling operations at the Jackson-31 well in Colorado, part of the Galactica Project operated with partner Blue Star Helium. The well was drilled to a total depth of 1,210 feet (368.8m) with free gas confirmed by wireline logs.
Perhaps most encouraging for investors was the news that the well flowed naturally during drilling operations, demonstrating strong reservoir communication. Technical data revealed the well encountered 57 feet (17m) of high-quality, gas-saturated Upper Lyons Sandstone Formation with impressive porosity ratings between 22-26%.
Samples have been dispatched to laboratories for analysis of helium and CO2 concentrations, whilst preparations continue for surface pressure readings and flow testing.
In a separate development, Helium One announced receipt of an offer letter from the Mining Commission in Tanzania for the grant of a Mining Licence covering their southern Rukwa Helium Project. Much of Helium One’s newsflow has been focused on Colorado of late, so news of progress in Africa will be welcomed by investors.
The potential licence would span approximately 480 square kilometres, encompassing the entire southern Rukwa project area across the Momba and Sumbawanga Districts. The offer follows special approval from Tanzania’s Ministry of Minerals, which has permitted the Mining Commission to grant a larger-than-standard licence area that will enable full development of the project’s potential.
With the drilling rig now being mobilised to the Jackson-4 well location in Colorado and the company reviewing the specific terms of the Tanzanian mining licence offer, investors will be watching closely for further updates that could sustain the current positive momentum in the share price.