Noble Helium identified eight additional shallow helium gas targets and natural hydrogen potential in the North Rukwa project. This expansion follows promising results from Mbelele-1 and Mbelele-2 wells, which showed high helium and hydrogen concentrations. The company will conduct low-cost shallow geophysics surveys in Aug'24, led by the University of Dar es Salaam, to mature these targets for drilling which will take upto 4-6 weeks. The expanded appraisal programme aims to enhance commercialisation and gather further data on hydrogen potential, with drilling and testing expected to be completed this dry season.
Press Release:
Integration and analysis of our exploration data has identified additional Mbelele shallow helium gas cap look-a-like structures, each with the potential for natural or “white” hydrogen. Noble Helium Limited (ASX:NHE) plans to expand the upcoming appraisal activities to include these additional targets, with a view to an upscaled helium development program of the North Rukwa project, and to gather further data to understand the identified “white” hydrogen potential.
NHE Managing Director & CEO, Mr Shaun Scott, said identifying these potential additional targets and white hydrogen potential has significantly enhanced the scope for monetisation and de-risked the Mbelele shallow gas play.
“Identifying the potential free gas cap while drilling Mbelele-1, in conjunction with the widespread high helium concentrations sampled throughout the lake beds and in soil gas surveys gave a strong indication this was not an isolated occurrence. Re-examining all of the data we have gathered to date with a change in focus towards this type of structure has proven successful and we expect to turn many of these additional potential targets into drill prospects for our appraisal program using the simple, quick, low-cost shallow geophysics surveys which will be undertaken by the University of Dar es Salaam.” Mr Scott said.
“We have also had time to focus on the hydrogen potential, following up on the significant above background levels of hydrogen detected in the mud-gas while drilling Mbelele-2. This has resulted in careful, in-house verification and analysis, since the drilling of Mbelele-1 and -2, with high levels of hydrogen observed in both wells and the right geology for natural hydrogen creation. Testing of the hydrogen potential will form part of the upcoming appraisal program.”
“As the rig mobilisation and de-mobilisation costs will stay the same, with the low per hole drilling costs and the low cost of the geophysics surveys, we expect to be able to accommodate the additional wells with our existing cash. Given the nimble nature of the rig and that drilling each well will only take a few days there is plenty of time to complete these additional geophysics surveys and still drill and test all of the potential targets this dry season. The Noble technical team needs to be congratulated for thinking outside the box to identify these additional significant opportunities for the Company. “
Following identification of the 8 (eight) additional potential shallow free gas Helium targets onshore (see Figure 1 below), a team from the University of Dar es Salaam School of Mines and Geosciences is preparing to undertake shallow seismic and electrical resistivity surveys to confirm the targets and mature them to “drillable” status as part of the upcoming appraisal program. It is anticipated that the team will be mobilised into the field in early August at the expected completion of the road repairs and the geophysics program will take approximately 4-6 weeks to complete.
As the survey work is completed at each location and the results integrated into our sub-surface model, the Company will finalise the new drill locations and landowner arrangements, then mobilise the rig to site. It is expected that each well will take approximately 2-3 days to drill with approximately one week of testing to follow while the rig is relocated to the next site. The Company is having specialised well heads manufactured to allow for gas flow and composition testing using a methodology adapted from the successful shallow helium well tests undertaken by 45-8 Energy a private French Helium exploration and production company.
As noted in our release on 7 February 2024 potential for natural or “white” hydrogen via “natural radiolysis” was identified during pre-drill geological studies conducted by Oxford University. Subsequently, in-house studies identified an additional “white” hydrogen source in the area.
A review of the drilling program data identified significant hydrogen anomalies in the mud gas, with Mbelele-2 mud gas demonstrating an average of ~1,300 times and up to ~2,000 times atmospheric while drilling the uppermost 480m section (Figure 2a). Mud-gas readings are always highly diluted by air and in-situ downhole hydrogen concentrations are expected to be significantly higher, as noted in our 9 April 2024 announcement where helium mud-gas reading of 6.4ppm compared to the lab analysis of 24,600ppm from the MDT sample taken at approximately the same depth. A follow-up detailed review of Mbelele-1 confirmed elevated mud-gas hydrogen throughout that well also (avg. 930 times atmospheric, max. 1,580 times). Importantly, the highest hydrogen readings in both wells were coincident with excellent reservoir as indicated on wireline logs.
Favourable geology has now been identified trending beneath the northern end of Lake Rukwa for another natural hydrogen-forming mechanism known as serpentinization (Figure 2b). “White” Hydrogen generated by both mechanisms is expected to be focussed into structures in the Noble Helium acreage to the west. The company now has an increased expectation for high hydrogen productivity in its licence areas (Figure 2b), including the upcoming low-cost, shallow drill targets.
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