Helium One encouraged that Tai is still best prospect in Rukwa Basin portfolio

Helium One Global Ltd (LON:HE1), the primary helium explorer in Tanzania, has announced that the Company has completed an independent verification of the prospective resources at the Tai Prospect. The evaluation of the total gas and helium prospective resources, and completion of a competent person’s report (CPR) for the Tai prospect has been carried out and issued by reserves auditors ERC Equipoise Ltd (ERCE).

Highlights:

·    The deterministic sum of the unrisked estimates of 2U¹ net helium prospective resources in the report is 2.8 billion cubic feet (“Bcf”) and the deterministic sum of the unrisked 2U¹ total gas prospective resources is 212.2 Bcf across the combined intervals of the Lake Bed Fm, Nsungwe Fm, Karoo Sandstone and weathered Basement.

·    This demonstrates a 61% increase in the original resource estimate from the previous 2020 CPR completed by SRK Consulting (Australasia) Pty Ltd.

·    The deterministic sum of the 3U² net helium prospective resources is 7.1 Bcf in the ERCE report, which is a 30% increase from the previous 2020 CPR completed by SRK Consulting (Australasia) Pty Ltd.

·    The deterministic sum of the unrisked 3U² total gas prospective resources is 437.8 Bcf in the ERCE report, which is a 294% increase from the previous 2020 CPR completed by SRK Consulting (Australasia) Pty Ltd.

·    These substantial increases are the result of more detailed interpretation of the additional 2D seismic data acquired across Tai in 2021, and the Company’s improved understanding of the structural closure.

·    The CPR will be available on the Company’s website shortly.

These results support the work completed by the Company’s technical team and demonstrates our technical competency in prospect maturation and identification. Tai remains the best-defined prospect within the Company’s portfolio and highlights the opportunity to maximise the economic potential of helium in the Rukwa Basin.

The current global demand for helium is 6.6 Bcf in a US $7 billion market³. Helium prices continue to rise due to the current shortage and with a global average import price⁴ of US $457/mscf in January 2023, the last twelve months have seen a 39% price increase, a trend set to continue given the global deficit in the interim between new supply streams coming on-line.

Lorna Blaisse, CEO of Helium One, commented:

“We are very pleased to have carried out this independent report with leading reserve auditors, ERCE as it provides us with a robust view of our drill ready prospect. The team has undertaken a huge amount of detailed technical work over the past two years and we are very confident that the Tai prospect gives us the best chance of proving up helium in the Rukwa Basin. With a substantial increase prospective resource and a Geological Chance of Success (CoS) similar to that which was concluded in the previous CPR, I remain encouraged that Tai is still our best prospect in our Rukwa Basin portfolio.  I am very thankful to the team for their continued efforts in moving this project forward.”

Total and Helium Gas Gross Unrisked Prospective Resources

Reservoir	Total Gas Resources including Inerts (Bscf)				Prospective Total Helium Resources (Bscf)				COS
	1U	2U	3U	Mean	1U	2U	3U	Mean
Lake Bed Fm A	6.1	19.3	52.2	36.2	0.09	0.37	1.19	0.55	14%
Lake Bed Fm B	7.5	19	44.5	23.5	0.11	0.37	1.01	0.49	14%
Lake Bed Fm C	2.6	7.1	18	9.2	0.04	0.14	0.41	0.19	14%
Nsungwe	6.7	17.6	42.9	22.3	0.1	0.34	0.97	0.47	14%
Karoo Sandstone	69.2	138.4	253.9	152.7	0.5	1.42	3.2	1.69	14%
Weathered/Fractured Basement	4.4	10.8	26.3	13.8	0.03	0.11	0.32	0.7	10%
Deterministic Total	96.5	212.2	437.8	257.7	0.9	2.8	7.1	4.1

Notes:

1.   Helium One’s interest in the licence blocks is 100% working interest. Therefore, gross and net working interest, unrisked Prospective Resources are equal.

2.     The Prospective Resources have not been adjusted for geological chance of success (COS). The COS is an estimate of the probability that drilling the prospect would result in a discovery as defined under SPE PRMS

3.    In the case of Prospective Resources, there is no certainty that any gas, including helium, will be discovered, nor if discovered will it be commercially viable to produce any portion of the resources.

4.   The June 2018 SPE/WPC/AAPG/SPEE/SEG/SPWLA/EAGE Petroleum Resources Management System (PRMS) and associated guidance notes allow for the application of PRMS principles to the estimation of non-hydrocarbon resources. Accordingly, ERCE has applied the principles of the PRMS to the estimation of the Prospective Resources presented here, noting that such application is outside the scope of the PRMS.

5.    Unrisked mean totals are not representative of the expected total from the prospect and assumes a success case in all reservoir intervals.

6.  The Prospective Resources have not been adjusted for the chance of development. Quantifying the chance of development (COD) requires consideration of both economic contingencies and other contingencies, such as legal, regulatory, market access, political, social license, internal and external approvals and commitment to project finance and development timing. As many of these factors are out-with the knowledge of ERCE they must be used with caution

¹2U Denotes the unrisked best estimate Prospective Resources

²3U Denotes the unrisked high estimate Prospective Resources.

³ Source: Kornbluth Consulting, 2023

⁴ Source: AKAP Energy, 2023