(Alliance News) - Helium One Global Ltd on Monday said its preferred drilling rig has been signed off as fit for purpose by ADC Energy Ltd, a rig audit and evaluation company.
Helium One is a London-based helium explorer focused on Tanzania. It holds prospecting licences across three distinct project areas - Rukwa, Balangida and Eyasi - which are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country.
The third-party engineering audit confirmed the operational capability of the Epiroc Predator 220 Land Rig for phase two drilling at the Rukwa project area in Tanzania.
The audit included a detailed examination of the entire drilling rig and associated systems, and culminated in a successful high pressure endurance test requiring 8 hours operation at a pressure load of more than 2,000 pounds per square inch.
Helium One said energy technology company Baker Hughes Ltd will provide integrated services, including drilling fluid, cementing, wireline evaluation and downhole gas sampling.
It will now begin export procedures from Kenya, where the rig is kept, to Tanzania. The spud date is dependent on the mobilisation of Baker Hughes equipment, which the company expects to be released in December.
Chief Executive Officer David Minchin said: "The in-depth audit completed by ADC has delivered significant value to the company, flagging issues that had potential to cause considerable cost and delay if only identified later in the field. These issues have been resolved, and the Rig is now signed off as fit for purpose."
He added that an alternative rig had been identified at the Tai prospect should it not be possible to commence drilling operations in January or February 2023.
Helium One shares were trading 14% higher at 6.97 pence each in London on Monday morning.
By Holly Beveridge; hollybeveridge@alliancenews.com
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Helium One (HE1)