Australian helium producer Noble Helium (ASX:NHE) has executed an exclusive letter of intent (LoI) with African drill contractor Sofori for a drilling rig ahead of testing 2 ‘company making’ targets in Q3 2023 at the North Rukwa Helium Project in Tanzania.
The company reports the LoI, in cooperation with project neighbours Helium One Global (AIM:HE1), secures a Drillmec HH102 oil and gas rig to drill the recently announced Mbelele-1 and Pegere-1 prospects.
Internal estimates based on the most recent data and interpretations suggest that both prospects host a combined unrisked mean recoverable helium volume of 16.5 billion cubic feet (Bcf). Noble reports, this will represent less than 10% of the North Rukwa Project’s independently certified unrisked mean helium resource of 176Bcf.
Commenting on the LoI, Noble Helium Co-Founder and Chief Executive Officer (CEO), Justyn Wood says: “Sofori’s very capable oil and gas rig can reach depths of 2,500m, well beyond our deepest projected depth of 1,200m, and has been drilled continuously since 2017.
“It is the right size and in the right hands of our highly experienced drilling team”
It is the right size and in the right hands of our highly experienced drilling team. We are very confident of success in Q3.
Meanwhile, Noble Helium’s leadership group in Australia and our in-country team in Tanzania continue to develop cooperative partnerships with industry leaders and host communities to serve synergies, abbreviate timelines, and reduce costs.
As announced on 5 April 2023, multiple expressions of interest to participate in the North Rukwa Project and fund the drilling program were received at the end of the March quarter, as part of the company’s ongoing farm-out process.
Interest in the project, given its potential scale and strategic value, continues to be strong and we look forward to joining with a partner who shares our increasing confidence in North Rukwa’s helium prospectivity.”
Noble Helium is an Australian helium producer focused on its portfolio of projects in Tanzania. These projects are the North Rukwa, North Nyasa, Eyasi, and Manyara projects.
North Rukwa is located in southwest Tanzania across 12 prospecting licences covering a combined area of about 1,467km-square. North Nyasa is located on the border of southwestern Tanzania and Malawi covering 2 prospecting licences totalling 466km-square. The Eyasi and Manyara projects cover 5 prospecting licences across 1,138km-square in central northern Tanzania.
Images: Noble Helium Ltd & iStock
