Noble Helium’s Neighbour Gets a Rig

The neighbour of our helium Investment, Noble Helium (ASX:NHE), announced earlier this week that it had sourced a new rig to drill its helium prospect in Tanzania.

The neighbour is a company called Helium One which is listed on the London Stock Exchange.

Helium One has a market cap of $93M and is drilling an unrisked prospective helium resource of 138Bcf. This compares to NHE which has a market cap of just $33M with an unrisked prospective helium resource of176 Bcf.

We’ve been watching Helium One closely as we see their drilling as a potential bonus for NHE.

I.e if Helium One finds helium in Tanzania with their upcoming drill campaign it validates NHE’s prospects of also finding helium.

Conversely, if Helium One doesn’t hit helium it’s not necessarily a bad thing for NHE - we back NHE Managing Director Justyn Wood and the newly appointed Drilling Exploration Manager, Dermot O’Keeffe, to achieve success at what we think will be more mature targets.

Interestingly, with Helium One’s rig now secured for a Q1 2023 spud date the market has reacted favourably:

Helium One has re-rated up to ~47% in the last two days of trading on the back of the news.

We’ll continue to follow the share price action of Helium One in the lead up to drilling, as with any major gas drilling event, speculators often enter the stock ahead of the spud date.

Our hope is that as NHE builds towards its Q3 2023 drilling program to test the company’s two best targets, a similar favourable market reaction plays out.

What’s next for NHE? With a Drilling Exploration Manager in place, we’re hoping to see the results of NHE’s completed 3D seismic campaign, as this could further advance farm out discussions. For a quick rundown of NHE’s significant progress to date, check out our NHE Progress Tracker.