Helium One (HE1) Shares Gapped Up 11% After Resuming Drilling

The Helium One Global Ltd (LON: HE1) share price gapped up 11% after revealing that the drilling of the Tai-3 well had successfully recommenced after stopping on Wednesday, 4 October 2023, after the drill rig suffered a component failure within the primary rig carrier.

The primary helium explorer had initially estimated that it would take two weeks to repair the drill rig and get it back into operation. However, the repairs took a much shorter time as the crew worked tirelessly to source the replacement part and install it on the drill rig to get it back to work. 

On Friday, the 13th of October, the company achieved a significant milestone by successfully installing the replacement part needed to address the component failure that occurred in the primary rig carrier on the 4th of October.

This achievement was made possible through the collaborative efforts of Helium One’s skilled rig mechanic and the dedicated engineers from Epiroc, the rig manufacturer. Following the installation, the rig underwent thorough testing procedures to ensure its readiness for resuming operations.

As of 16:00 hrs EAT (14:00 hrs BST) on Sunday, the 14th of October, the firm was pleased to announce the resumption of drilling operations by the Predator 220 drilling rig. This development marks a crucial step in the ongoing drilling project.

Before the unfortunate component failure, the company had drilled to just below the 13 3/8″ casing shoe. This progress aligned with the firm’s anticipated drilling schedule, showcasing its commitment to efficiency and precision. 

Lorna Blaisse, HElium One’s CEO, commented: “As a Company, we remain resilient and continue to proactively address any hurdles we encounter. The wider Helium One team, both at the rig site and elsewhere, have pushed exceptionally hard over the past week to troubleshoot the issue, source a replacement part from the USA, reinstall and repair the rig, and I am pleased that we are now back on track in an extremely short period of time. We very much look forward to drilling ahead into our target reservoirs at Tai-3 over the coming days and to evaluate the well prior to rigging down and moving the rig to our next location at Itumbula.”

Helium One (HE1) share price. 

The Helium One share price gapped up 11.02% to trade at 5.45p, from Friday’s closing price of 4.90p.