(Alliance News) - Helium One Global Ltd on Friday said it continues to have concerns about the lack of operational and contractual progress regarding its letter of intent with drilling contractor SOFORI and has consequently issued the firm a rectification notice.
Shares in the firm dropped 9.9% to 5.00 pence on Friday morning in London.
The Tanzania-focused helium explorer said it is reviewing and progressing with a number of alternative options that will still allow it to meet its targeted drilling of the Tai-C in the event that SOFORI does not fulfil the obligations outlined in the rectification notice.
"Whilst frustrating that a definitive contract has not been signed, we continue to work with SOFORI with a view to fulfilling their obligations under the [letter of intent]. In the meantime, we have commenced our civils work at site in order to ensure we can expedite drilling operations as soon as possible once we have a rig secured," said Chief Executive Lorna Blaisse.
Helium One noted that the Drillmec HH102 Marriott rig is also another option that the company continues to evaluate.
By Heather Rydings, Alliance News senior economics reporter
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Helium One (HE1)