Noble Helium has launched a rigorously vetted five-hole drilling campaign targeting a 225.5 BCF helium resource in Tanzania’s North Rukwa Project, aiming for near-term cash flow with reduced costs and enhanced geological insight.
- Five-hole drilling campaign independently peer-reviewed by global experts
- Targets 225.5 billion cubic feet prospective helium resource
- Focus on gas-phase helium along North Rukwa’s western margin
- Drilling costs expected to be under 10% of previous campaign
- Near-term monetisation plan aims for positive cash flow within 18 months
A Strategic Leap in Helium Exploration
Noble Helium Limited (ASX, NHE) has announced a significant step forward in its quest to unlock helium resources at its flagship North Rukwa Project in Tanzania. The company’s upcoming five-hole drilling campaign has undergone an independent peer review by a team of internationally recognised industry experts, underscoring the technical robustness and strategic intent behind the initiative.
This campaign targets a prospective helium resource estimated at 225.5 billion cubic feet, focusing on gas-phase helium deposits along the project’s western margin. The drilling plan leverages an upgraded helium charge model, refined through previous drilling results and integrated technical analysis, to pinpoint high-potential zones.
Cost Efficiency Meets Technical Confidence
One of the campaign’s standout features is its cost efficiency. With a clearer understanding of the geology and associated risks, Noble Helium plans to deploy a lower-cost drilling rig typically used for water wells and geothermal projects. This approach is expected to reduce drilling expenses to less than 10% of the costs incurred during the company’s maiden two-well campaign at Mbelele, which required more expensive oil and gas drilling rigs due to higher risk factors.
The wells will be vertical onshore boreholes, with the BoreXpert rig and wireline logging equipment on standby, ready for rapid mobilisation. This streamlined setup reflects the company’s confidence in its risk reduction strategy and technical groundwork.
Near-Term Monetisation and Market Potential
Noble Helium’s Executive Chairman, Dennis Donald, emphasised the project’s potential to become a globally significant helium producer. The campaign aims not only to validate the resource but also to establish a small-scale operation capable of generating positive cash flow within 18 months. This timeline aligns with the company’s strategic direction to quickly monetise its helium assets amid growing global demand for this critical industrial gas.
The North Rukwa basin’s helium is particularly valuable given its “green helium” credentials, sourced from a non-carbon environment, addressing supply chain fragility and geopolitical concerns inherent in helium production tied to hydrocarbons.
Technical Insights and Next Steps
The campaign includes drilling at two key prospects, Mbelele and Kinambo. Mbelele-1A will appraise a shallow gas cap with helium concentrations previously measured between 0.40% and 2.46%. Meanwhile, four exploration wells at Kinambo will test multiple structures and free gas zones, where surface gas bubbling has indicated elevated helium levels.
With safety and logistics surveys completed and field engineering in its final stages, Noble Helium is poised to commence drilling imminently. The company will host a webinar on 18 August 2025, led by Executive Chairman Dennis Donald, to provide further insights and engage with investors.
Bottom Line?
As Noble Helium prepares to drill, the market watches closely to see if this peer-reviewed campaign can translate promising geology into tangible helium production.
Questions in the middle?
- Will the drilling results confirm the estimated 225.5 BCF helium resource?
- How will the reduced drilling costs impact the company’s overall project economics?
- What timeline and scale can investors realistically expect for commercial helium production?