RE: New Analyst Video20 Mar 2024 08:01
β...It's actually quite remarkable what the management team has managed to achieve here. If you look at the North Sea, for example, it took 40 odd wells to make commercial discovery. They've managed to float helium to surface here in three wells. Β It's significant..."
Thatβs the opinion of Liberum Capitalβs new energy analyst Sam Wahab about Helium One Global Ltdβs (LON:HE1) progress across its Tanzanian prospects.
In hisΒ research noteΒ he reiterates the not insignificant figure of 4.7% which relates to the flowing concentrations of helium to surface at the companyβs Itumbula West-1 well. That, he says, could represent βa world class discovery.βΒ He also reminds readers that Helium One has found pure helium which contrasts with larger industry players who have found impure helium often associated with hydrocarbons. βIt costs more to pull those two commodities apart,β says Wahab and that pulling apart process βdoesn't really tick that ESG box.β
The company's extended well test at Itumbula in the third quarter of 2024 could determine whether and how Helium One can commercialise what it has.Β The hope is that what is has is a consistent concentration of 4.7% and that itβs plentiful.
Conditional upon these results, Wahab says, the company will then be able to advance discussions with off-takers and industry partners and consider designs for a potential production facility. Β βIf they can prove up Itumbula and indeed Tai, I wouldn't see any shortage of admirers for a company like Helium One.β
GLA πͺππ