Helium One reports higher flow rates from southern Rukwa testing

(Sharecast News) - Helium One Global said on Monday that electrical submersible pump testing at its ITW-1 well in the southern Rukwa Helium Project had demonstrated materially higher flow rates and supported the launch of a strategic farmout process, as it seeks a development partner.

The AIM-traded group said the 20-day testing programme in Tanzania was completed with zero lost time injuries and produced more than the equivalent of 250,000 barrels of water.

It said the well flowed at rates of up to 16,400 barrels per day, with an average of 15,000 daily barrels at a maximum pump frequency of 55Hz, representing a six-fold increase compared with natural flow during the 2024 Extended Well Test.

Sustained helium concentrations averaged 5.4% air corrected at surface, with a peak of 9.2%, while the average measured gas water ratio was 0.06 m3/m3 - 0.05 Sm3/Sm3 corrected for standard temperature and pressure - and peaked at 0.1 m3/m3 - 0.08 Sm3/Sm3 corrected.

The company noted that the P90 case in its June 2025 independent competent persons report assumed a gas water ratio of 0.04 Sm3/Sm3 and helium concentration of 3.3%.

"The successful completion of the ESP testing programme represents an important operational milestone for Helium One and further demonstrates the production potential of the southern Rukwa Helium Project," said James Smith, chairman.

"The testing delivered consistent and reliable operational performance, with ESP flow rates exceeding expectations and sustained helium concentrations in line with anticipated ranges.

"Whilst the gas water ratio was towards the lower end of the expected outcome range, the results provide valuable technical insight and further support the company's understanding of the subsurface system.

"Importantly, the operational success of this programme provides a strong foundation for the Company to progress discussions with potential industry partners and seek external investment to advance the project towards development.

"The company intends to commence this process imminently."

Chief executive Lorna Blaisse added that the ESP had "effectively demonstrated" that the firm could produce over 16,000 barrels per day and maintain consistent levels of helium concentrations over an extended period of time, while managing the water disposal at surface.

"We now need to increase our understanding of the Basement fault and fracture play, where we believe there is the potential to increase GWRs and helium concentrations.

"In order to do this, a further work programme will be required, and we will commence a strategic farmout process to seek an industry partner to help us deliver this."

The ESP, provided and operated by CenerTech Group, part of CNOOC, ran for more than 450 hours with no maintenance or downtime between 26 January and 14 February.

It was set at 1,061 metres measured depth within the fractured Basement, slightly shallower than planned due to open hole ledges, with a packer installed at 840 metres in the lowermost Karoo Group to reduce commingled flow.

However, high net-to-gross and connectivity in the Karoo reservoir meant isolation of the Basement was not fully achieved.

Temperature readings of produced fluids at around 90 degrees Celsius and lower than expected salinity levels suggested dilution from the shallower Karoo aquifer, potentially lowering overall gas water ratios and helium concentrations.

On shut-in, wellhead and downhole pressures quickly re-pressurised, indicating reservoir support and the likelihood of a wider connected resource.

The company said it would continue to evaluate the results, with further drilling and testing likely to target primary fractured Basement plays across its 480 square kilometre mining licence area, including shallower fault-juxtaposed targets.

As part of the next phase, Helium One said it would start a formal farmout process to identify and select a suitable industry partner and secure third-party financing to advance the southern Rukwa project towards commercial development.

At 1304 GMT, shares in Helium One Global were up 3.46% at 0.81p.

Reporting by Josh White for Sharecast.com.