Noble Helium has established in Tanzania an (unrisked summed mean) Certified Prospective Resource (CPR) of 98Bcf (Billion Cubic Feet) across 7 structures, equivalent to 20 years’ current supply as a Primary Product, or 5 times the US Federal Helium Reserve was at peak capacity. This is in just the first of our 3 sedimentary basins under license (Figure 1). Annual World demand is 6 Bcf.
We seek investors with the capacity to invest in our project over the next 2 years to verify the scale of this resource, structured and phased to protect investors’ interests. Our Proof Program culminates in drilling 2 wells to demonstrate helium trapped within these basins at concentrations similar to the prolific and anomalous surface seeps (3-18% helium at rift-related hot springs), associated with mainly nitrogen. The possibility of a minor percentage of hydrocarbon gas by-product presents the opportunity for low-cost power generation at the Helium Liquefaction Plant.
The funds will be utilised to select the first wells to test this world-leading helium play, acquiring new, value-adding exploration data in Noble Helium’s licenced Tanzanian blocks and complementing the already expansive exploration data set. They will also be used to pay annual surface rentals, cover overheads and allow us to progress our global search program, in partnership with the world’s leading noble gas geoscientists, Professors Ballentine and Gluyas at Oxford and Durham Universities respectively.
Noble Helium has a well-developed program to de-risk the Tanzanian project, adapting decades of oil and gas exploration expertise to the search for another gas – helium. The 2022 program will deliver valuable exploration data, allowing us to select the two best prospects for the drilling of two exploration wells to deliver the Proof stage in 2023.
We are extremely confident that we are in the best place globally to test for large primary helium reserves. The East African Rift is unique, and in recent years has demonstrated an extraordinary 80% exploration drilling success rate for oil and gas (24/30 wells), compared to the global average of 30%. Noble Helium has the ambition and potential to become one of the world’s largest multi-jurisdiction primary helium producers. [Note: This is all good, but the implicit challenge is the lack of evidence that what works efficiently in a petroleum basin will work as well in a helium basin. Something like – The Rukwa Basin contains multiple direct analogues to these successful oil and gas features elsewhere in the Rift, only juxtaposed over rich helium sources rather than petroleum sources.]
Prices have tripled in the last 10 years. Helium currently trades in excess of $250/Mcf (vs LNG at ~US$5/Mcf). Supply chain disruption over the past decade has users craving stability that can only be delivered by diversification, ideally with an independent global scale resource capable of replacing the lost BLM reserve. This fact, coupled with concern about security of supply resulting from increasing reliance on production from Qatar and soon Russia and the closure of the U.S. government reserve in 2019, is driving interest in developing new sources of helium.