Commercial production potential

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Noble Helium (NHE.AX NBHEF) announced that its plans to monetise the helium potential of its North Rukwa Project in Tanzania have received a boost with Mbelele’s shallow, free gas cap zone showing commercial production potential. Per the company, review and analysis of mud-gas readings obtained during the drilling of Mbelele-1 indicate helium readings significantly above background from around 75m to 125m. Furthermore, recently completed reservoir modelling demonstrates the potential for commercial flow rates from this part of the Mbelele structure. Laboratory results have previously confirmed high helium concentrations up to 2.46%. The next step is to perform a low-cost test on Mbelele-1’s shallow section, where downhole samples using the Modular Dynamic Tester could not previously be acquired. Results, they say, will inform both early commercialisation opportunities and future, deeper, potentially richer targets.