Helium One Regulatory News (HE1)

28 March 2022 

HELIUM ONE GLOBAL LIMITED 

("Helium One" or the "Company") 

Unaudited Interim Results for the Six Months ended 31 December 2021 

Helium One Global Limited (AIM:HE1), the primary helium explorer, is pleased to announce its unaudited condensed and consolidated results for the six months ended 31 December 2021. 

Within the period 

· Completion of 2021 Drilling Campaign identifying a working helium system in the Rukwa Basin

· Completion of 220 line kilometre of Phase II 2D Seismic acquisition over the northern extensions of Tai and Itumbula structural highs

· Net cash balance as at 31 December 2021 of $9,729,864 (30 June 2021: $15,802,111) 

Subsequent Events

· Completion of a multispectral satellite spectroscopy study with identification of multiple surface helium anomalies at Rukwa, Eyasi and Balangida project areas

· Completion of QEMSCAN study providing further data to  provide information on reservoir quality, mineralogy, seal potential and grain size distribution

· Completion of ERT study to aid our technical understanding of potential shallow gas accumulations

· Ongoing interpretation of 2D seismic has identified multiple new areas of interest additional to our existing prospect portfolio

· Advanced discussions with a leading global drilling company for the provision of a containerised rig solution for drilling within the 2022 drilling season

David Minchin, CEO of Helium One commented: 

"We are pleased to report these interim results which demonstrate that Helium One has maintained a commitment to cost effective exploration, while providing significant de-risking over the Rukwa basin. Our 2021 drilling campaign delivered 'proof of concept' by demonstrating the occurrence of subsurface helium within a working helium system. This gives us the confidence to push ahead with additional exploration and mobilise a conventional oil and gas rig for our 2022 campaign.

"Our 2022 drilling campaign is supported by an integrated subsurface database pulling together information from 2D Seismic, multispectral satellite spectroscopy ("MSS"), electrical resistance tomography ("ERT"), airborne gravity gradiometry ("AGG") and QEMSCAN analysis to provide a powerful predictive tool for the ranking of prospects. The subsurface team have already identified multiple areas of interest for follow on work which are additional to our current prospect portfolio.

"The Company remains in advanced negotiations with a leading global drilling company and is committed to the provision of a rig solution for our 2022 drilling campaign. We have multiple rig options and our Principal Drilling Engineer is currently travelling to perform an in-person assessment of appropriate rigs."

For further information please visit the Company's website: www.helium-one.com

Contact

Notes to Editors

Helium One was founded in September 2015 to explore, develop, and ultimately, become a producer of low-carbon helium, a critical material that is essential in many modern technologies.

Helium One has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.

Helium One's assets are located within the rift basins on the margin of the Tanzanian Craton. The Company has secured 18 Prospecting Licences covering 4,512 km² in three distinct project areas: the Rukwa, Balangida and Eyasi projects. These are located near surface seeps with helium concentrations ranging up to 10.6% He by volume.

The Company's flagship Rukwa Project is located within the Rukwa Rift Basin covering 3,448km2 in south-west Tanzania. The project is considered to be an advanced exploration project with a portfolio of leads and prospects defined by high-resolution gravity gradiometry, and modern and historic 2D seismic. The Rukwa Project has been de-risked by the 2021 drilling campaign, which identified reservoir and seal with multiple prospective intervals from basin to near surface within a working helium system. 

SRK Consulting have reported a 'Best Estimate' Un-risked Prospective Resource of 138 Bcf (2U/P50) for the Company's Rukwa Project, meaning that the project has potentially strategic global implications with the ability to significantly resolve helium supply/demand issues.

All Helium One's licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.

CEO's Statement 

Helium One is pleased to report on an active six-month period ended 31 December 2021 which has delivered significant de-risking of our flagship Rukwa project. Helium One has delivered an aggressive exploration programme culminating in the milestone events of the Company's maiden exploration wells drilled on the Rukwa Project in Tanzania - the first drilling campaign in Africa to target primary helium.

The work undertaken in 2021 has provided proof of concept and has enabled us to reduce exploration risk across the Rukwa Basin. The drilling carried out on the Tai prospect demonstrated a working helium system with good to excellent-quality reservoirs, thick sealing units, and helium gas shows at multiple prospective intervals.

The Company has now moved on to Phase II exploration, building an integrated subsurface database to deliver a successful drilling campaign in 2022. Aspects of the Phase II programme completed during the period have included:

· Completion of a 220-line kilometre 2D seismic campaign in December last year, designed to target the northern extensions of known structural highs believed to act as a charge focus for helium migration.

And post the period end:

· Completion of a multispectral satellite spectroscopy study over our entire 4,512km2 licence area with identification of multiple new surface helium anomalies 

· Completion of an ERT survey, again post year end, to identify resistivity anomalies within the ultra-shallow zone (

· The completion of QEMSCAN study on drill cuttings collected from the Tai-1/-1A wells to provide information on reservoir quality, mineralogy, seal potential and grain size distribution across the entire sedimentary sequence. 

The ongoing interpretation of the Phase II 2D Seismic data has identified multiple areas of interest at both the Lake Bed and Karoo Group levels. The area surveyed was not previously covered by historic 2D seismic, so newly identified closures will be additional to the Company's current prospect portfolio.

The Company intends to complete additional work on these areas of interest to identify drill-ready prospects. This will be done through ongoing 2D Seismic interpretation, integrating data from Airborne Gravity Gradiometry, Multispectral Satellite Spectroscopy, Electrical Resistance Tomography, and QEMSCAN data. This information will feed into risk weighting and volumetric analyses which will, in turn, inform prospect prioritisation ahead of our planned 2022 drilling campaign.

Helium One is in advanced discussions with a leading global drilling company for the provision of a containerised rig solution and remains committed to securing a suitable rig for drilling at Rukwa within the 2022 drilling season.

Management

Over the past six months the Company has further strengthened its operational and technical teams as well as adding significant industry experience to the Board of Directors.

The appointment of Nigel Friend as non-executive director in March 2022 brings significant industry experience to the Board of Helium One. Over his career Nigel has developed extensive expertise in successfully growing companies through a clear focus on cash generation and has spent more than 35 years working in the oil and gas industry and corporate finance.

The addition of Colin Ivory as COO, Chris Eyre as CFO, Mark Beeson as Consultant Geophysicist, Mike Williams as Principal Drilling Engineer, Owen Hughes as Senior Operations Geologist, and Sam Girling as Principal Geophysicist, bringing very significant experience in successful gas exploration. In conjunction with the board, this seasoned group of professional gas exploration experts cover a range of crucial areas that have significantly added to the intellectual resource of the Company in order to deliver Helium One's strategy and objectives in 2022.

Financials

For the six-month period ended 31 December 2021 the Group reported an unaudited pre-tax loss of $1,792,648 (six months ended 31 December 2020, unaudited restated loss: $3,532,686). The loss for the period ended 31 December 2020 included an impairment charge of $2,277,196 which related to the impairment of assets acquired in the amalgamation with Attis Oil and Gas Limited. The Company continues to be well funded with cash balances totalling $9.7 million as at 31 December 2021.

Outlook

The year ahead promises to be a busy period for the Company with Helium One in a strong position to deliver another ambitious exploration programme. The Company remains well financed with a strong management team to deliver a discovery within the significantly de-risked Rukwa basin.

I would like to take this opportunity to thank all our stakeholders for their continued support and look forward to providing further updates as we continue to deliver our exploration programme.

David Minchin

CEO

28 March 2022 

 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEET

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. General Information

The principal activity of Helium One Global Limited (the 'Company') (formerly Helium One Limited) and its subsidiaries (together the 'Group') is the exploration and development of helium gas resources. The Company is incorporated and domiciled in the British Virgin Islands. The address of its registered office is P.O Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands. The Company's shares are listed on the AIM Market of the London Stock Exchange ('AIM'), the Frankfurt Stock Exchange and the OTCQB exchange.

2. Basis of Preparation

The condensed consolidated interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As an AIM listed Company the company is entitled to exemption from adopting IAS 34 and this exemption has been taken to the effect that segment information is not disclosed. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2021. The interim consolidated financial statements have been prepared in accordance International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee (IFRS IC) interpretations as adopted by the European Union applicable to companies under IFRS and in accordance with AIM Rules, which have not differed from the previously EU-endorsed IFRS, and hence the previously reported accounting policies still apply. The financial statements are prepared on the historical cost basis or the fair value basis where the fair valuing of relevant assets or liabilities has been applied. The interim report has not been audited or reviewed by the Company's auditor.

Going concern

The consolidated interim financial statements have been prepared on a going concern basis. The Group's assets are not generating revenues, an operating loss has been reported for the period ended 31 December 2021. The directors' have prepared financial projections and cash flow forecasts covering a period of at least twelve months from the date of approval of these interim financial statements showing that the Group will have sufficient available funds to meet its contracted and committed expenditure. The directors are confident that current capital projects and working capital requirements are funded and have a reasonable expectation that they could secure additional funding, when needed, to fund additional capital projects. During the prior period, the company successfully raised approximately $21.6 million funds and going forward, directors are confident that funding can be raised as required.

The impact of Covid 19 on future performance and therefore on the measurement of some assets and liabilities or on liquidity might be significant and might therefore require disclosure in the interim financial statements, but management has determined that they do not create a material uncertainty that casts significant doubt upon the company's ability to continue as a going concern.

It is the prime responsibility of the Board to ensure the Group remains a going concern. On 31 December 2021, the Group has cash and cash equivalents of $9.7 million and no borrowings.

Based on their assessment, the Directors have a reasonable expectation that the Group will be able to continue in operational existence for the next 12 months and continue to adopt the going concern basis of accounting in preparing these consolidated interim financial statements.

Critical accounting estimates

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Changes in accounting estimates may be necessary if there are changes in the circumstances on which the estimate was based, or as a result of new information or more experience. Such changes are recognised in the period in which the estimate is revised. Significant items subject to such estimates are set out in Note 4 of the Company's 2021 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Company's medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Company's 2021 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.helium-one.com. The key financial risks are liquidity risk, credit risk, interest rate risk and fair value estimation.

The Condensed interim financial statements were approved by the Board of Directors on 25 March 2022.

3. Accounting Policies

The accounting policies adopted are consistent with those used in the preparation of the Group's financial statements for the year ended 30 June 2021 year and corresponding interim reporting period. There were no new or amended accounting standards that required the Group to change its accounting policies. The directors also considered the impact of standards issued but not yet applied by the Group and do not consider that there will be a material impact of transition on the financial statements.

4. Expenses by nature breakdown

5. Loss per share

The calculation for earnings per share (basic and diluted) is based on the consolidated loss attributable to the equity shareholders of the Company is as follows:

Earnings and diluted loss per share have been calculated by dividing the loss attributable to equity holders of the company after taxation by the weighted average number of shares in issue during the year. Diluted share loss per share has not been calculated as the options, warrants and loan notes have no dilutive effect given the loss arising in the period.

6. Dividends

No dividend has been declared or paid by the Company during the six months ended 31 December 2021 (2020: $nil).

7. Intangible assets

Intangible assets comprise exploration and evaluation costs which arise from both acquired and internally generated assets.

8. Share premium

9. Restatements

The restatements between the published 31 December 2020 interim accounts and the current presentation relate to the treatment of the interest incurred on the redemption of convertible loan notes which were previously treated as finance charges, which have now been taken to the share premium reserve as shown in the audited accounts as at 30 June 2021. The impact on the Interim accounts is disclosed below.