Helium One shares tumble following Tanzania drilling results

imageStock Markets12 hours ago (Aug 11, 2021 09:40)

© Reuters.

By Samuel Indyk

Investing.com – Shares in Helium One (LON:HE1H) were trading almost 50% lower on Wednesday morning after the company announced it has completed drilling of the Tai-1A exploration well to a depth of 1121 metres at its 100% owned Rukwa Project in Tanzania.

Although the company said they were “encouraged” by the results, helium shows within the deeper and thicker sandstone units of the main Karoo reservoir were not able to be logged due to poor and deteriorating hole conditions.

Furthermore, petrophysical analysis indicated there was no free gas in the uppermost thinly bedded Karoo sands associated with helium shows.

“Frustratingly, due to poor and deteriorating hole conditions, including large washouts across much of the Karoo, we were not able to run wireline tools downhole beyond 882m and have subsequently not been able to log the main Karoo Formation,” said Helium One Chief Executive Officer David Minchin in a statement to the London Stock Exchange.

“Thinly-bedded sands in the uppermost Karoo that we were able to log have no indications of free gas.

“With deteriorating hole conditions and no free gas identified we could not drill stem test at Tai-1A leaving untested shows.”

The company will now evaluate the results of Tai-1A and incorporate that into ongoing exploration strategy which may include redrilling of Tai to test identified targets.

At 09:36BST, shares in Helium One were trading lower by 49% at 13.30 pence per share.

Helium One shares tumble following Tanzania drilling results

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Please enter your comment!
Please enter your name here