Broker target 3.4p4 Sep 2024 10:43
Panmure brokers note #HE1
Helium One Global* (HE1H.L, 1.35p, £80m, BUY, TP3.4p) announced the completion of the EWT on the Itumbula-1 well in Tanzania. The second phase of the EWT had seen the deeper basement interval flow tested, with the interval flowing 2,701bpd of fluid on a restricted choke with average He concentrations of 5.5% with maximum concentrations of 6.7%. This means that the EWT flowed 834scfd of He. Company modelling suggests this well could be scaled up to produce 20,000bpd of fluid which would deliver 6,176scfd of He. The EWT also was flowed from both intervals, although no details on comingled rates were provided. The results are very encouraging, and de-risk the potential of the Itumbala area and we feel this is a big step towards demonstration of commerciality. HE1h will now prepare a feasibility study for a development and then submit a Mining Licence application in the coming weeks. #Helium