Shares of Helium One Global Ltd (LON: HE1) rallied 11.7% after releasing an operations update reminding investors that it started its maiden drilling programme on 12 June and encountered helium deposits on 19 June.
The company was delighted with the early discovery of helium deposits, given that it had been planning for its maiden drilling programme for over five years before starting the current drilling operations.
Helium One shares are currently trading near their all-time highs and could rally much higher if the company makes more positive announcements in future.
The company has had a stellar year, raising £10 million in April to fund its Rukwa helium project in Tanzania. The firm used the funds to initiate the maiden drilling programme at Rukwa.
The recent helium discovery at Rukwa indicates that a portion of the gas is trapped beneath the subsurface.
However, Helium One warned that it needed to do further analysis to determine whether the helium deposits were available on a commercial scale before they can start celebrating.
Suppose the company discovers a significant amount of Helium at the site. In that case, it could stand to make impressive profits given that initial estimates indicate that Rukwa is a world-class resource with low operating costs once it is fully operational.
In the meantime, investors will be patiently waiting for further updates from the company as the maiden drilling operation advances with the drilling of multiple holes.
*This is not investment advice.
Helium One share price.
Helium One shares rallied 11.72% to trade at 27.65p, rising from Friday’s closing price of 24.75p.
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