Noble Helium finishes seismic, does deal with Helium One

With its much anticipated drill program fast approaching in Q3 of this year, our helium Investment Noble Helium (ASX:NHE) has finished up its Phase 1 seismic program, and signed a deal with Helium One to work together on securing a drill rig.

The cooperation agreement with Helium One will be followed by the submission of non-binding farm out offers by the end of this quarter - ending 31 March.

As we’ve said before - we think the two companies can win together in Tanzania.

There was plenty to digest in the latest update out of NHE today, and we were particularly encouraged by the commentary on potential drill targets:

“confident that multiple high Probability of Success (POS) drilling candidates will emerge from the integration of all newdata by the end of the quarter”

Noting that the Chilli Chilli structure (seen below) has a mean Prospective Helium Resource of 10.5 Bcf (billion cubic feet), this by itself could be an economically viable helium target assuming a price of ~US$450/Mscf (thousand cubic feet) for long-term liquid helium contracts:

What’s more NHE says this target offers the opportunity to find “stacked pay” which in essence means there could be multiple productive gas formations in the same drill hole.

Along with the Chilli Chill structure the Mbelele and Kachinga are maturing well and should evolve into drillable targets - these have mean Prospective Helium Resources of 10.0 Bcf and 7.9Bcf each.

That’s a lot of helium across three targets - a big year for NHE awaits.

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What’s next for NHE?

Quite a bit - Q1 farm out bids are due. Q2 NHE is expecting to complete the farm-in and then Q3 is the all important drilling. We’re also keeping a close eye out for developments regarding the Helium One cooperation agreement - we want to see the two Tanzanian helium companies secure a drill rig together.