LONDON (ShareCast) - (Sharecast News) - Tanzania-focussed helium explorer Helium One reported a total comprehensive full-year loss of $13.36m on Tuesday, widening from $5.16m year-on-year.
The AIM-traded firm, which is pre-revenue, said the largest contributor to the loss in the 12 months ended 30 June was the impairment loss of $8.52m on the relinquishment of licences.

Its net assets at the end of the period totalled $18.03m, down from $28.54m at the end of the 2021 financial year.

The board said the decrease was due to the impairment of its exploration assets as a result of the relinquishment of licence areas.

As at 30 June, its cash position stood at $4.91m.

On the operational front, Helium One completed its maiden drilling programme in the year, delivering a proof-of-concept and enabling it to derisk the Rukwa basin.

It demonstrated a working helium system at Tai-1/-1A, with the presence of "good quality" reservoirs, thick sealing units and multiple helium shows.

The company had started a phase-two exploration programme, providing it with the best information available to inform the planning and targeting for the next drilling campaign.

Helium One said it had "significantly strengthened" its management team, and concluded the renewals and relinquishments process for licences, enabling it to focus on its remaining, "more prospective" acreage, as well as saving capital.

The firm recently signed a memorandum of understanding with Exalo Drilling for the supply of a drilling rig, and inked a letter of intent with Baker Hughes for the supply of integrated wellsite services.

It said the phase-two drilling programme was planned to start in the first quarter of 2023.

"This was a significant year for the company as we completed our first two exploration wells in Rukwa and significantly derisked the Rukwa project by identifying a working helium system at our Tai prospect," said chairman Ian Stalker.

"As phase-two exploration moves towards drilling, with the potential to prove up what we believe to be a world class helium province, Helium One is able to leverage the knowledge and experience of the team of experts that have joined us over the period allowing us to move more confidently into the next phase of our development."

At 1608 GMT, shares in Helium One Global were down 13.37% at 7.32p.

Reporting by Josh White for Sharecast.com.

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