Noble Helium has upgraded its North Rukwa helium resource estimate by nearly 30%, driven by fresh data and a refined charge model, setting the stage for a targeted drilling campaign.
- NSAI upgrades North Rukwa prospective helium volumes by 28.5%
- Mean helium resource estimate rises to 225.5 billion cubic feet
- Enhanced drilling plan targets Mbelele and Kinambo prospects
- Six-month strategic review improves governance and cost control
- BorExpert rig on standby for rapid, cost-efficient deployment
Resource Upgrade Signals Growing Confidence
Noble Helium Limited (ASX, NHE) has announced a significant upgrade to its flagship North Rukwa Project’s prospective helium resource. Independent auditor Netherland, Sewell & Associates, Inc (NSAI) revised the mean prospective helium volume upward by 28.5%, from 175.5 billion cubic feet (BCF) to 225.5 BCF. This boost reflects new exploration data collected since 2022, including drilling and geophysical surveys conducted throughout 2024.
The upgrade is underpinned by a completely revised helium charge model, which suggests multiple gas-forming mechanisms are active within the North Rukwa Basin. This geological insight strengthens the case for the basin as a potentially world-class helium system, a critical factor given helium’s growing importance in high-tech and medical industries.
Refined Drilling Strategy Targets Key Prospects
Building on the resource upgrade, Noble Helium is finalizing an enhanced drilling campaign focused on the Mbelele and Kinambo targets. These locations have been identified through detailed peer-reviewed geological analysis and the updated charge model as optimal for gas-phase helium extraction. The company’s technical team, led by Executive Director Justyn Wood, has made critical advances in understanding the basin’s helium system, enabling a more precise and cost-effective drilling plan.
Importantly, the BorExpert rig is currently on standby at no cost, allowing Noble Helium to mobilize quickly without incurring the high expenses typical of petroleum-oriented drilling operations. This operational flexibility could accelerate the timeline for resource appraisal and eventual development.
Strategic Review Enhances Governance and Efficiency
The updated drilling plan is part of a broader six-month strategic review led by Executive Chairman Dennis Donald. This review has introduced best-practice governance frameworks aimed at improving safety, process rigor, reporting accuracy, and cost control across the company’s operations. Such measures are critical for managing the complexities and financial demands of helium exploration in a frontier region like Tanzania’s East African Rift System.
With helium priced at a premium; up to 50 times the cost of liquefied natural gas; and its supply increasingly constrained globally, Noble Helium’s progress positions it well to meet rising demand for this scarce, tech-critical gas. The company’s focus on ESG standards and non-hydrocarbon sources of helium also aligns with growing market preferences for cleaner, geopolitically independent supply chains.
Looking Ahead
While the resource upgrade and drilling plans mark important milestones, the estimates remain prospective and contingent on successful exploration and development. The final number of wells, their depths, and budgets are pending peer review, underscoring the inherent uncertainties in early-stage resource projects. Nonetheless, Noble Helium’s methodical approach and strategic enhancements suggest a promising path forward in unlocking the North Rukwa Basin’s helium potential.
Bottom Line?
Noble Helium’s upgraded resource and refined drilling strategy set the stage for a pivotal phase in its quest to unlock a major new helium supply.
Questions in the middle?
- How will final drilling results impact the confidence and size of the helium resource?
- What are the expected timelines and capital requirements for the upcoming drilling campaign?
- How will the strategic governance improvements translate into operational and financial performance?