RE: THE SP 📈🚀16 Feb 2026 07:56
A bit of a long rns .....
flow, but due to the nature of the high NtG2 and connectivity in the Karoo reservoir, the data suggests that isolation of Basement was not fully achieved.
During the testing period, the well produced a sustained average concentration of 5.4% helium (air corrected), with a peak of 9.2% helium (air corrected). The helium appears to be transported to surface primarily within fluids that were consistently measured at 90°C. This suggests dilution from the Karoo aquifer as pure Basement-derived fluids would have presented hotter temperatures at this depth, based on the known geothermal gradient for this area on the Itumbula High.
In addition to the temperature readings, the Company has also measured lower than expected salinity readings from the produced water - both from onsite testing and third-party laboratory testing in Tanzania. These values also support the rationale of an element of dilution from the younger Karoo aquifer, which has likely impacted the GWR measurements.
During the final stages of testing, the well was shut in and pressure measurements taken. During these tests, it was observed that the wellhead pressure and downhole pressure quickly re-pressurised which indicates encouraging reservoir support and the likelihood of a wider connected resource.
The ESP produced more than the equivalent of 250,000 bbl of water, a six‑fold increase in flow rate compared with natural flow during the 2024 EWT, with no loss of helium concentrations. One of the concerns ahead of the ESP operation was water disposal at surface, which was carefully managed and subsequently did not impact the testing phase. Going forward, this enables the Company to re-evaluate future water disposal options.
Forward Plan
The Company will now continue to evaluate the results of this test. In particular, it will seek to increase its understanding of the sources and interaction of the helium enriched fluids that have been identified. This will require further drilling and testing, which will likely focus on primary fractured Basement targets at other locations across the 480 km2 Mining Licence area. A number of these targets have already been identified by the Company, and many of these are at shallower depths where the Basement is juxtaposed against faults.
During this evaluative phase, the Company will also consider additional data acquisition options which will enable a more detailed evaluation of Basement fractures and connectivity. Future work programmes will need to focus on appraising the full potential of the Basement helium play.
In order to assist with further trajectory towards development of the southern Rukwa Helium Project, the Company believes that now is an appropriate time to seek third party financing. To this extent, the Company will now embark upon a formal farmout process that will identify and select a suitable industry partner.
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