LONDON (ShareCast) - (Sharecast News) - Helium One announced a further helium gas show in drilling mud in the Red Sandstone Group and sidetrack from the Tai-1 well at its wholly-owned Rukwa project In Tanzania on Monday, following loss of the drill string at 561 metres.
The AIM-traded firm said helium gas shows were identified in stratigraphy above its primary targets from 552 metres to 561 metres, as measured by the on-line gas chromatograph.

It said the gas show was supported by indications of gas visually identified as bubbles in drilling mud returns at surface.

Helium shows continued to 561 metres, at which point drilling operations were suspended due to the parting of the drill pipe in the midst of drilling the gas show.

It said Mitchell Drilling was unable to recover the lost drill pipe from the hole to-date, with a subsequent delay to drilling operation resulting in the decision to sidetrack drilling from above the lost pipe at 483 metres.

"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 chief executive officer David Minchin.

"This gas show, along with our earlier reported gas show announced on 22 June, demonstrates a working helium system and supports helium prospectivity for additional gas shows throughout the stratigraphy.

"Visual identification of bubbles in mud returns also offers circumstantial evidence of free helium gas in the sub-surface."

However, Minchin said it was important to note that the interval needed to be logged with wireline, before a pay zone could be determined.

"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.

"This option allows us to utilise the existing 483 metres of already-completed drilling, rather than relocating to a new location.

"With the above indicators already identified we look forward to a successful completion of drilling on this target location."

At 1504 BST, shares in Helium One Global were down 7.27% at 21.93p.

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