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Solo Oil highlights “very encouraging” at Helium One’s Rukwa

Last updated: 22:04 09 May 2017 AEST, First published: 16:26 09 May 2017 AEST

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Field work is progressing in Tanzania

Solo Oil PLC (LON:SOLO) has highlighted “very encouraging” recent progress with Helium One’s Rukwa and Balangida projects in Tanzania.

The company, which in March acquired a 10% stake in Helium One, noted that an airborne gravity gradiometry survey spanning 16,000 line kilometres had now been completed across the Rukwa and Balangida licences.

It added that planning for a second phase of a soil gas and groundwater geochemistry survey is underway at Rukwa, and the company expects work to begin in the third quarter. The new survey follows up previous work which confirmed widespread helium micro-seepage characteristic of subsurface trapped accumulations, Solo explained.

"Helium One's licence areas, and especially Rukwa, represent one of the most exciting new potential sources of commercial helium in the world today,” said Neil Ritson, Solo chairman.

“The most recent results from the field continue to be very encouraging and the integration of all the data will move us much closer to drilling a subsurface trap.

“Solo's team is working closely with Helium One and providing our expertise in developing the timeline and plan for technical activity ahead of drilling which is currently scheduled for next year."

The company owns a 10% stake in Helium One and it has the option to acquire a further 10%.

Craig Howie, analyst at stockbroker Shore Capital, in a note, said: “we are encouraged by progress at the flagship Rukwa helium exploration project, where we believe that Solo is positioned to provide valuable technical expertise and assistance aimed at monetising this exciting industrial gas resource.”

 

--UPDATED adds broker comment--

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