Helium One (HE1) Share Price Plunged 36% on Tai-3 Well Results

The Helium One Global Ltd (LON: HE1) share price plunged 35.7% after announcing the results of the drilling campaign at its Tai-3 well, including the wireline logging and downhole sampling at the well. 

Downhole fluid samples retrieved from reservoir intervals within the Upper and Lower Karoo Group have successfully confirmed the presence of helium. This breakthrough discovery comes after thorough wireline logging and initial petrophysical analyses, indicating high-quality reservoir sands in the Upper and Lower Karoo Group formations. 

These reservoirs are interspersed with well-developed shale-prone seals, revealing a previously unexplored stratigraphic section within the Rukwa Rift Basin. During on-site pressure-volume-temperature analysis of the downhole fluid samples, helium concentrations of up to 8,320 parts per million (ppm) were recorded. 

The above measurements significantly surpass the typical background levels of helium, which are approximately 5 ppm. This exciting finding suggests a substantial presence of helium within the reservoirs.

Notably, no downhole samples from the Basement were obtained during this operation phase. This limitation arose because the wireline tools could not progress beyond a measured depth of 1,430 meters due to washouts and ledges in the drilling process.

As a result of these findings, the Tai-3 well has been temporarily suspended for future operations, which will involve drilling deeper into the Basement target. This decision was prompted by the detection of increased helium levels while drilling, indicating the potential for further significant discoveries in this area.

Lorna Blaisse, Helium One’s Chief Executive Officer, commented: “These results are very encouraging indeed, and we are delighted to have completed the Tai-3 well safely and to have been able to acquire a full set of wireline logs and downhole samples.  This is an excellent result for the Company and a huge testament to the team's performance, especially given the challenges we have faced along the way. Whilst disappointing that we were unable to run the wireline tools further into the Basement target at this time, given the increased helium shows we saw at this depth, we are confident that by casing the well and suspending Tai-3, we will be able to return at a later date and target the fractured Basement helium play which we believe to have significant potential.”

Helium One (HE1) share price. 

The Helium One share price plunged 35.71% to trade at 3.60p from Friday’s closing price of 5.60p.