Helium One (HE1) Shares Plunge Again On Further Disappointing Results

Shares of Helium One (LON: HE1) have plunged once more after the company said it completed its 2021 exploration drilling campaign without identifying helium gas.

While the company said it has significant new data to “move rapidly to Phase 2 exploration work” at its Rukwa Project in Tanzania, the Tai-2 well was completed without finding any helium. 

During the campaign, two wells were drilled, defining a working helium system in the Rukwa Basin, de-risking the company's 3,500km license area.

However, the AIM-listed firm said, “greater knowledge of helium geology allows identification of ‘Shallow' and ‘Deep' target types for Phase 2 Exploration.”

It is also well-financed and has £10 million to advance the Rukwa Basin towards discovery. 

David Minchin, CEO of Helium One, commented: “We are excited by the results of the 2021 exploration drilling campaign which, although stopping short of flowing gas to surface, has produced significant information enabling Helium One to define a two-track exploration route to develop Rukwa towards discovery.

“Results from Tai-1 have shown a prolific basin with helium shows identified at multiple levels from near surface to basement. Tai-2 has verified the potential for development of newly identified ‘Shallow' traps within the Lake Bed Formation, which has the capacity to open a pathway to low cost exploration and development of near surface gas deposits.”

Earlier this month, Helium One reported that it could not conduct tests at its Tai-1 well, which encountered helium shows, due to poor well conditions.  On that day, the company's shares closed down 52% at 12.5p. Helium One's share price has currently declined 32.66%, trading at 8.35p. 

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