Helium One Global Ltd - HLOGF stock

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Company Details[edit]

Helium One Global Ltd (OTC: HLOGF, LON: HE1) is a United Kingdom mineral exploration company. The firm primarily engages in the exploration, development, and production of helium gas resources. Helium One holds 100% interest in approximately 18 prospecting licenses of exploration in prospective helium provinces in Tanzania. Its geographical segments include the British Virgin Islands and Tanzania. The company currently focuses on three project areas within its portfolio in Tanzania: the Balangida, Eyasi, and Rukwa Projects. Helium One was incorporated in September 2015 and is based in Dar es Salaam, Tanzania. Its shares are publicly traded on OTCQB under the HLOGF ticker symbol.[1]

Operations[edit]

The company is focused on international helium resource exploration to become an ultimate producer of high-grade helium for the global market. The company is currently rooted exploration and production of the valuable product in Tanzania, one of Africa’s top natural raw material holders. Its prospecting licenses cover approximately 4,512km2 of land constituting the Rukwa, Balangida, and Eyasi projects. The company renewed its licenses, valid for three years in 2020, and has a further 2-year renewal option. The firm, being the first mover in East Africa, has the opportunity to control a globally significant Helium-bearing region. Helium One is, so far the only listed firm in the UK that enables investors to actively participate in the helium market.[2]

Projects[edit]

Rukwa Project[edit]

The company has discovered numerous prospects and leads in the Rukwa Rift Basin. The Rukwa project is situated in southwestern Tanzania, covering approximately 3,590 km2.

Tai Prospect[edit]

Helium One announced that the estimated recoverable helium resource at the Tai prospect has been increased by 361 billion cubic feet (BCF) to a total of 2.183 trillion cubic feet (TCF), making it one of the largest helium resources globally. Helium One believes that the increased resource estimate at the Tai prospect further validates its strategy and the potential of its Tanzanian helium portfolio. The company plans to continue its exploration and development activities to unlock the value of this resource and contribute to the growing global demand for helium, which is used in various industries, including healthcare, electronics, and aerospace.[3]

An initial well in 2021 did not find commercial quantities of helium, although a working helium system was confirmed. The rig used for the well was insufficient to drill in the unconsolidated geology of the area and was not able to reach the targeted depth or test the hole properly.[4]

A second well was drilled in 2023 and was able to reach basement, however, no commercial quantities of helium were found.

Italmbula Prospect[edit]

After obtaining positive drilling outcomes from the Tai-3 well and noting an increase in helium concentration in the fault and fractures near the Basement, the company conducted a thorough reassessment of the geology at the Itumbula prospect. This area is defined by a substantial western fault that extends into the Basement source rock. The interpretation is that this fault is connected to the active surface helium seep located 3km away.[5]

Considering the findings from Tai-1/-1A and Tai-3, which suggest that fluid migration plays a crucial role in releasing helium from the Basement source through fractures and faults, the company has decided to focus on the western bounding fault at Itumbula as a primary target. Consequently, the design of the Itumbula well is tailored to directly address this new fault play, with the expectation that helium concentrations will be notably elevated in this area.[5]

Drilling began in January, 2024 and initial results were positive. This well was able to reach targeted depth and helium shows of 20 times background levels were found. Also interesting is the fact that hydrogen was discovered as well, which was not expected. Hydrogen does have value so this could be a bonus. [6]

Eyasi and Balangida Projects[edit]

Eyasi and Balangida, are located in north central Tanzania and contain exceptional helium gas concentration at the surface, and ideal geology for source, reservoir, trap, and seal. The two are deemed early-stage exploration projects but the company has heavily invested in operations to deliver them to the next level.[7]

Drilling Rig[edit]

Since completing the unsuccessful drilling campaign in 2021, the company has struggled to line up a suitable rig for the next drilling campaigns.

One potential rig was audited in 2022 and results strongly indicated that it would be suitable to commence the phase-two program at the Rukwa project. The company stated that work was underway to mobilize vital equipment and determine a suitable start date for the drilling process.[8] Unfortunately, the company was not able to move the rig out of the country where it is located, therefore, it cannot be used for Helium One's drilling program.

In late 2022, a letter of intent was signed for a rig owned by Exalo, however, the current operator decided to pay retention costs and continue to use it.[9]

In April, 2023, Helium One and Noble Helium signed a Letter of Intent with SOFORI for a drilling rig. In addition, orders were placed for long lead items and the plan is to spud during Q3 2023. By partnering with Noble Helium, who is also exploring in Tanzania, rig mobilization costs can be shared.[10]

In July, 2023, Helium One purchased a drilling rig and shipped it to Tanzania for drilling later in the year at the Tai-C well. This rig is far superior than the one used during the 2021 campaign, with the capability to go up to 2,000 meters.[11]

The Product and Market[edit]

Helium has an exclusive combination of physical and chemical features that make it a high-value, non-renewable commodity essential for numerous high-value and high-tech applications. Helium is used in Pressurizing and Purging, Welding, Controlled Atmosphere, and Leak Detection, among other uses. The gas can be used to treat respiratory diseases such as asthma and emphysema. Its extraction process is almost similar to natural gas drilling, hence heavily borrowing knowledge and technology from the oil and gas sector. Liquid helium transported requires no pipelines as it can conveniently be transported via ISO containers mounted onto trucks.[12]

Due to its countless uses and requirements for endless technologies in the current developing world, helium’s demand keeps surging year in and year out. Its global demand is quantified to be around 6 billion cubic feet (Bcf) per annum, with a 3% CAGR. Today’s bulk liquid helium global market’s worth is estimated at around USD2.7 billion, with the unit price (USD per thousand cubic feet) rising by over 135% in the past two years. The helium gas segment is forecasted to grow at a CAGR of 4.1% between 2022 and 2031.[13]

Management and Directors[edit]

In February, 2023, Lorna Blaisse replaced David Minchin as CEO.[14]

Management[edit]

  • Lorna Blaisse, Chief Executive Officer
  • Mike Williams, Director of Operations
  • Chris Eyre, Chief Financial Officer
  • Gunter Kai Gruschwitz, Technical Director

Board of Directors[edit]

  • Ian Stalker, Non-Executive Chairman
  • Nigel Friend, Non-Executive Director
  • Sarah Cope, Non-Executive Director
  • James Smith, Non-Executive Director
  • Robin Birchall, Non-Executive Director
  • Russel Swarts, Financial Director
  1. CNBC News. HLOGF Stock Profile. Accessed on 10/17/2022.
  2. Heliumone.com About Helium One. Accessed on 6/5/2023.
  3. Proactive Investors. Helium One receives hefty resource upgrade at Tai prospect. May 22, 2023.
  4. Reddit. HeliumOne Update 19/10/2021. October, 2021.
  5. 5.0 5.1 Share Talk. Helium One Global Ld (AIM:HE1) Company update. December 5, 2023.
  6. gasworld. Helium One reports ‘elevated gas shows’ at Itumbula West-1. January 25, 2024.
  7. Heliumone.com. Current Projects. Retrieved on 10/18/2022.
  8. Proactive Investors. Helium One says rig audit 80% complete, working with contractor on Rukwa start date. Retrieved on 10/18/2022.
  9. Proactive Investors. Helium One Global assessing rig options for Rukwa Phase II. January 3, 2023.
  10. Bright IR. Helium One Global Drilling Rig Update. April 6, 2023.
  11. Proactive Investors. Helium One Global buys its own rig for Tanzania project. July 10, 2023.
  12. Heliumone.com. Helium Market. Retrieved on 6/5/023.
  13. Transparency Market Research. Helium Market Outlook 2031. Retrieved on 10/17/2022.
  14. NewsnReleases. Lorna Blaisse appointed CEO of Helium One Global. February 9, 2023.

OTC Symbol: HLOGF | OTC Tier: OTCQB


The page is authored by: Wisdom Tree, Crescendo