Helium One (LON: HE1) said on Monday that it can confirm a further helium gas show in drilling mud in the Red Sandstone Group and sidetrack from Tai-1 well.
However, the company's shares have fallen due to a setback.
Gas shows were identified above the primary targets from 552 metres to 561 metres. They were visually identified as bubbles in drilling mud returns at the surface.
The helium shows continued to 561 metres, at which point the drilling operations were suspended due to a parting of drill pipe in the midst of drilling the gas show. Unfortunately, the drilling company has been unable to recover the lost drill pipe, and the delay resulted in the decision to sidetrack drilling from above the missing pipe at 483 meters.
“The identification of helium gas shows in the Red Sandstone Group between 552 and 561 metres is another unexpected, but positive result as this zone was previously considered to be of low prospectivity,” said David Minchin, CEO of Helium One.
“The delay caused by the loss of drill string in the midst of the drilling is unfortunate, however contingency plans have been implemented to sidetrack from above the lost pipe and continue drilling to test both the Red Sandstone gas show and priority target horizons beneath,” he added.
Helium One's share price dropped to as low as 18.5p following the announcement. It is currently down 11.21% at 21p.
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