Helium One inks Baker Hughes partnership as it prepares to drill Tanzania well

Helium One Global Ltd has announced a milestone partnership ahead of phase II drilling at its Rukwa project in Tanzania.

The company said it has signed a letter of intent with international oil and gas consultants Baker Hughes (BH), which will provide integrated services ahead of the ‘spudding’ of an evaluation well in January or February next year.

Specifically, BH will ensure the company has the best equipment on site.

“Mobilising equipment currently in operation in Southern Africa allows us to deliver a cost-effective solution to overcoming the scarcity of downhole tools experienced globally,” said David Minchin, Helium One’s chief executive in a statement.

At the same time, rig audit work has been key in identifying component wear issues that are being rectified in the crucial preparatory period in the run-up to the evaluation well’s spud date.

In a comprehensive update, Helium One said it is in the process of renewing the licences for the Rukwa project area. However, it has committed to surrendering certain areas that aren’t prospective for helium, saving $309,600 a year in the process.

Located in southwestern Tanzania, Rukwa is estimated to be host to an ‘unrisked’ prospective recoverable helium resource of 138bln cubic feet of the inert gas, making this the largest known primary helium resource in the world.  Helium One has identified 21 prospects and four leads.

Global demand for helium, which is used in MRI machines and other medical equipment, continues to grow exponentially. In particular, the Russian invasion of Ukraine has prevented any additional new supply from being developed from the Amur facility in Siberia as Linde, Air Products and Air Liquide have officially suspended all activities in Russia.

This has led to a sharp increase in both spot and export prices for the gas.

SOURCE: PROACTIVE INVESTORS