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(Alliance News) - Shares in Helium One Global Ltd sank 25% on Thursday morning after announcing the failure to find helium gas from drilling at its Rukwa project in Tanzania.
Shares were trading 28% lower at 8.97 pence each in London on Thursday morning.
The Tanzania-focused helium miner said it had completed exploration drilling at the site and could move "rapidly" to phase 2 exploration. However, the Tai-2 target failed to identify any helium gas from the drill.
Despite the disappointment, the company said that greater knowledge of helium geology at the site allowed for the identification of shallow and deep target types for phase 2 exploration. The project is also well financed, with GBP10 million to advance the Rukwa Basin towards discovery.
"We are excited by the results of the 2021 exploration drilling campaign which, although stopping short of flowing gas to surface, has produced significant information enabling Helium One to define a two-track exploration route to develop Rukwa towards discovery," commented Chief Executive David Minchin.
The work undertaken so far in 2021 has "significantly de-risked" the Rukwa Basin by demonstrating a working helium system, Non-Executive Chair Ian Stalker added.
Investor Scirocco Energy PLC, which holds around a 1% stake in Helium One, noted the announcement and said that the drill had provided valuable information on shallow trap and seal potential at the site.
Scirocco shares were 5.3% lower at 0.85p each in London.
By Will Paige; willpaige@alliancenews.com
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