Tai-3 well successfully reached TD

Helium One Global (AIM: HE1), the primary helium explorer in Tanzania, is pleased to provide the following update on the drilling of the Tai-3 well.

Highlights

• Tai-3 well has successfully reached a TD of 1,448m measured depth ("MD") having encountered weathered crystalline Basement
• Elevated helium shows, up to six times above background, have been identified in the Lower Karoo Group and Basement targets
• Helium shows increased in frequency and quality with depth, as anticipated
• Whilst drilling into Basement, a fracture zone was encountered, which yielded elevated helium readings at the top of the Basement and led to partial losses of drilling mud
• Forward plan, following maintenance and safety checks, is to pull out of hole and rig up to run wireline for formation evaluation and downhole gas sampling

Details

The component to the iron rough neck was repaired and reinstalled, enabling the Company to drill ahead over the weekend and Basement has now been reached at 1,448m MD. Whilst drilling into the fractured Basement, comprised of metamorphic gneissic rock, the well encountered elevated helium shows up to six times above background. These readings were measured from the drilling mud using the Micro Gas Chromatograph and validated using the onsite portable Mass Spectrometer. This fractured Basement was anticipated, and was one of the Company's primary reservoir targets, therefore encountering elevated helium shows in this zone is very encouraging.

Upon drilling into crystalline Basement, the fracture zone led to partial losses of drilling mud. In order to stop these losses, which are not uncommon in fracture zones, lost circulation material was successfully added to the drilling mud. The decision was then made to call well TD at this stage, whilst the wellbore remains in good condition, and to run wireline logs and take downhole gas samples.

Before wireline operations commence, maintenance and safety checks on rig equipment will be completed to enable the drill string to be pulled out of hole safely and efficiently. The Company will then rig up for wireline and aims to complete all wireline operations, along with preliminary interpretations, before making any further announcements.

The timetable regarding a second well at Itumbula will be determined following the results of the wireline operations at Tai-3.

Lorna Blaisse, Chief Executive Officer, commented:

"We are delighted with the initial results at Tai-3 and it was extremely encouraging to see the helium shows increase with depth, as we had anticipated. We are pleased to have successfully TD'd safely, and managed to address the minor issues with the rig quickly and efficiently.

Given the mud losses encountered once we had reached the fractured Basement, we've decided to TD now so we can minimise any risk to wellbore stability and ensure that we can obtain successful logs and downhole gas samples. We're very much looking forward to commencing wireline operations and further evaluating the well."