Noble Helium Advancing Towards Drilling Program in Rukwa Basin

Noble updated its Tanzania exploration plans. The 3D seismic program has recommenced and is set to be completed by late February. The Company is in a farm-out process, with non-binding bids expected by end-Q1'23 and is currently evaluating four rig options ahead of drilling in Q3'23. Noble is confident that it will be able to announce high quality drilling targets with a 10.5bcf target called Chilichili highlighted.

Press Release:

Noble Helium Limited is pleased to provide an update on its exploration activities in Tanzania.

The Company is advancing preparations to discover gas-phase helium in the subsurface of the Rukwa Basin, SW Tanzania, and narrowing in on drilling candidates for spud in Q3 2023.

The 3D seismic program that commenced in 2022 has recommenced following replacement of the source vessel. The remaining 80km2 of the program is being collected for processing and interpretation.

The exploration program is on track for the commencement of drilling in Q3 2023, with multiple suitable rig options identified.

As announced previously, the Company is seeking partners for the drilling phase of the program in the North Rukwa Basin. Multiple parties have shown an interest in participating, with non-binding offers due by the end of March.

Noble Helium’s Co-Founder and CEO, Justyn Wood, commented:

“The Company’s 2022 exploration program has successfully provided highly encouraging signals from the Rukwa basin’s Helium System. This is allowing us to mature multiple drilling target options for our maiden drilling program in 2023.

“Applying best science, our aim is to demonstrate commercially viable, gas-phase helium within the subsurface of this globally unique helium system.

“We look forward to updating our shareholders as we complete our final preparatory activities in the North Rukwa Basin and progress to defining our two preferred drilling targets for Q3 2023.”

North Rukwa 3D Seismic Survey Recommences

The Company is pleased to advise that, on 30th January, our seismic contractor, BGP, successfully recommenced the final ~80km2 3D seismic survey over the Chilichili structures on the eastern side of Lake Rukwa. This is the last of the planned Phase I seismic programs prior to drilling in Q3 2023 and is expected to be completed by late February, retaining Chilichili on the list of potential drilling candidates.

The Chilichili structure is currently estimated to host a mean Prospective Helium Resource of 10.5 Bcf primary helium (NSAI 2022), with the full stratigraphic section of the Rukwa Basin, including deeper Karoo sands, offering significant potential for stacked pay. It is highly likely the Chilichili structure would be an economically viable standalone drilling target with long term liquid helium contracts recently executed at ~US$450/Mscf.

As previously announced, the fully processed 3D surveys over the three western leads have now been received and are being integrated into our PetrelTM subsurface model, with the Mbelele and Kachinga leads expected to mature to drillable Prospects and potential candidates for the upcoming 2023 drilling program.

The Company is confident that it will be able to announce high quality drilling candidates of potential economic significance in the coming weeks.

2023 Drilling Program and Farm-out

Preparations for the 2023 maiden drilling campaign are now well underway with our highly experienced drilling management team fully integrated into the Company and focussed on successfully delivering the well program.

In parallel, the farm-out process to fund the drilling program continues, with LAB Energy Advisors Ltd appointed to manage the process. Multiple parties have been engaged and non-binding offers are due at the end of Q1 2023.

Strong Activity Pipeline

As previously advised, with the Company now preparing to drill in the North Rukwa in Q3 2023, the following activities are expected to be completed over the coming months:

Link to the Press Release