How Noble Helium’s Resource Upgrade and Rig Exit Reset North Rukwa’s Future
Noble Helium advances its flagship North Rukwa helium project with a significant resource upgrade, rig exit at no cost, and new funding from key insiders, positioning for a leaner, data-driven drilling campaign.
- NSAI upgrades North Rukwa prospective helium resource by up to 28.5%
- Marriott drilling rig removed with no further financial exposure
- Unsecured loans totalling A$800,000 from Executive Chairman and major shareholder
- New International Advisory Board established under Duncan MacNiven
- Strategic review delivers cost reductions and improved operational governance
A Quarter of Transition and Opportunity
Noble Helium Limited has reported a pivotal quarter ending 30 June 2025, marked by strategic recalibration and promising technical progress at its North Rukwa helium project in Tanzania. The company’s focus remains on unlocking one of the world’s most productive helium systems, with a clear mission to drill, appraise, and monetise this rare resource.
During the quarter, Noble Helium successfully negotiated the removal of the Marriott drilling rig from site, eliminating ongoing stacking fees and associated costs without financial penalty. This move underscores the company’s commitment to fiscal discipline and operational efficiency as it pivots to a more cost-effective, data-led exploration approach.
Resource Upgrade and Technical Insights
Independent resource auditor Netherland, Sewell & Associates, Inc (NSAI) delivered an encouraging upgrade to the North Rukwa Project’s prospective helium resource. The mean estimate surged by 28.5% to 225.5 billion cubic feet (BCF), while the low estimate rose by 17.2% to 21.1 BCF. This upgrade incorporates new drilling and geophysical data gathered since the company’s 2022 pre-IPO report, reflecting a deeper understanding of the basin’s unique helium charge system.
Technical work led by Executive Director Justyn Wood, including peer reviews and refined geological models, has identified multiple shallow leads along the western margin and deeper, larger-volume plays on the eastern side of the basin. The Mbelele and Kinambo areas have emerged as priority targets for upcoming drilling, with the goal of establishing early cashflow through small-scale gas-phase helium production within 18 months.
Governance and Financial Resilience
In a significant leadership development, Dennis Donald stepped up from Non-Executive to Executive Chairman, advancing A$600,000 in unsecured loans to support the company’s working capital. Major shareholder Duncan MacNiven, appointed Chair of a newly formed International Advisory Board, also contributed A$200,000 under similar terms. This advisory board, comprising global helium and industry experts, is designed to provide strategic guidance and peer review, enhancing governance and operational rigor.
The company completed a comprehensive six-month strategic review, resulting in streamlined operations, adoption of stage-gate approval processes, rigorous cost controls, and a shift to the African BoreXpert rig; significantly reducing drilling costs compared to the maiden program. These measures aim to mitigate risk and maximize the probability of success in forthcoming exploration campaigns.
Financial Position and Outlook
Despite a low cash balance of A$0.04 million at quarter-end, Noble Helium has secured access to financing through convertible notes and unsecured loans totaling A$800,000 post-quarter. The company is actively appealing a Tanzanian Revenue Authority decision denying VAT refunds, which, if successful, could improve liquidity. The upcoming drilling program’s scale and timing remain under finalisation, with a focus on leveraging the upgraded helium charge model to target commercial gas-phase accumulations.
Overall, Noble Helium is navigating a challenging but promising phase, balancing financial constraints with technical advancements and governance reforms. The company’s strategic repositioning and resource upgrades position it well to capitalize on the growing global demand for helium, a critical element in technology and healthcare sectors.
Bottom Line?
Noble Helium’s next drilling phase and refinancing efforts will be critical to translating its upgraded resource potential into commercial success.
Questions in the middle?
- Will the upcoming drilling campaign confirm commercial gas-phase helium accumulations at Mbelele and Kinambo?
- How will the appeal against the Tanzanian VAT refund denial impact the company’s cash flow and financing runway?
- Can the new International Advisory Board accelerate technical validation and attract further investment?
