Helium One suspends Tai-3 operations due to rig problem

(Sharecast News) - Helium One updated the market on its Tai-3 operations in Tanzania on Friday, reporting an unexpected setback due to an issue with its drilling rig. The AIM-traded company said the Epiroc Predator 220 rig experienced a problem with its hydraulic system, affecting the performance of the iron roughneck mechanism, both of which are crucial components for its operations.

As a result, Helium One temporarily halted its operations while investigating the extent of the issue.

This disruption prevented the company from pulling the drill string out of the hole and commencing wireline operations as planned.

However, it said the drill pipe could still be rotated, and drilling fluid could be circulated, maintaining good wellbore stability.

Despite the setback, earlier results from Tai-3 drilling were highly promising, with helium indications registering up to six times higher than background levels at multiple depths.

The firm said the indications increased in frequency and quality as drilling progressed deeper.

Helium One and its on-site team said they were dedicated to resolving the current issue promptly to ensure the acquisition of valuable wireline data and downhole gas samples.

The company said it would provide further updates as they become available.

"Whilst this delay is frustrating not only for the team, but also for our shareholders, we are hugely encouraged by the initial results from Tai-3 and are looking forward to a full and positive well evaluation as soon as this issue is resolved," said chief executive officer Lorna Blaisse.

At 0962 GMT, shares in Helium One Global were down 10.24% at 5.39p.

Reporting by Josh White for Sharecast.com.