LONDON (ShareCast) - (Sharecast News) - Helium One Global said on Tuesday that the current operator of the Exalo drill rig in southern Africa had amended their contract with Exalo to allow for an extension of their operations for a period of up to 12 months.
The AIM-traded firm said that, through the execution of a non-binding memorandum of understanding, as announced on 22 November, it understood that the Exalo rig was due to be mobilised to its Rukwa licence area in early 2023.

It said it had continued in good faith to negotiate detailed mobilisation and logistics arrangements until it was "unexpectedly notified" on 2 January that contract terms between Exalo and the operator had changed.

The company said it was reviewing a number of alternative rig options for phase 2 Tanzania drilling operations, and would announce an updated timeline to drilling once new arrangements were confirmed.

"The decision by the current operator to pay rig retention costs rather than release the unit is both disappointing and frustrating," said chief executive officer David Minchin.

"However, based on recent rig searches, the company is aware of a number of alternative rigs for our phase 2 exploration drilling.

"We are rapidly reviewing these options to inform the market with updated rig selection and timeline to drilling."

Minchin said the company remained in a "strong position" based on a "sound geological prognosis" and with team, finances, and subsurface targets in place.

"We are committed to the delivery of a successful phase 2 exploration drilling campaign as early in 2023 as possible."

At the close on Tuesday, shares in Helium One Global were down 20.42% at 5.65p.

Reporting by Josh White for Sharecast.com.

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