(Alliance News) - Helium One Global Ltd on Thursday said that it has, alongside Noble Helium, entered into a letter of intent for an oil and gas rig to drill at Rukwa.
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.
Helium has signed with Tunisian Drilling Contractor, SOFORI, for the provision of the Drillmec HH102 oil and gas rig for the drilling campaign at Rukwa. It said that the rig share initiative, following on from the co-operation agreement, would help it to to save significant costs on mob/demobilisation.
"We are pleased to have entered into this LoI with SOFORI and Noble Helium. This is an encouraging step towards our proposed spud date of Q3 and is both timely and cost effective," said Chief Executive Officer Lorna Blaisse.
"While negotiations continue, with a view to signing a contract as soon as possible, SOFORI have informed us that the rig has no further conflicting commitments going forward. As a result of this, we have already placed orders for long lead items. We look forward to providing further updates as appropriate."
Helium One Global shares were trading 1.0% higher at 6.36 pence each in London on Thursday morning.
By Holly Beveridge, Alliance News reporter
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Helium One (HE1)