Tanzania-focused Helium One aims to land on London’s AIM on December 3 via a reverse takeover of cash shell Attis Oil and Gas.
“This is a fantastic opportunity for Attis shareholders and new investors coming in. We’re one of the only companies with this size of strategic resource in the world, and we’ll be the only company on AIM in the exciting and expanding helium space,” Helium One’s CEO David Minchin told Energy Voice.
The company received its Tanzania licences in 2015. Since then, the company has collected and reprocessed 1,000 km of original seismic, flown a high gravity seismic survey and carried out a micro and macro analysis of seeps.
The company had planned to list on the Australian stock exchange but then COVID-19 derailed this plan. “In Australia, it’s harder to secure investment in Africa. London is a natural place for our plans and it’s a good place that understands investments in Africa.”
“The listing now is to raise £5 million to mobilise the rotary lie detector,” Minchin said. The company plans to drill in the first or second quarter of 2021.
“It’s great in concept, we just need to make the discoveries. We’ve done all we can now.” The company expects to hold a resource of 138 billion cubic feet at the Rukwa project. “At $280 per mcf, that’s $36 billion.”
Helium One will drill three wells to a maximum depth of 1,200 metres. Each well should take a month to complete and the company is in negotiations with contractors. The company can make savings as a result of the downturn, Minchin noted.
Success at the first wells would see Helium One move into appraisal drilling and 3D seismic, in order to understand trap geology fully. “In 2022, we would be looking for equity for construction and then it would take around a year to build. We could be producing in 2023-24.”
The company would build the $50mn production plant from modular components. The company would export helium as a liquid in an ISO container, via Dar es Salaam.
Tanzania has thrown up some challenges for companies but Minchin was optimistic. “We’ve seen Tanzania turn around in the last six months,” going on to note Barrick Gold’s award of more exploration licences in the country. “Tanzania is open for business and this is the time to be involved.”
The state approved the renewal of Helium One’s exploration licences in September.
Scirocco Energy voiced its support of Helium One’s plans with Attis. Scirocco, formerly known as Solo Oil, has a 12% stake in Helium One. The launch on AIM would cut Scirocco’s stake to 4.6%.
Tom Reynolds, CEO of Scirocco, said the deal with Attis was a positive development for Helium One and set it up to deliver material growth. “The valuation read across highlights the challenging market conditions at this time, but in our view, it’s far more important that we now have exposure to a very exciting story with a listing on a recognised exchange.”