1.61 quarters of funding as Noble Helium pauses Kinambo drilling

Kinambo drilling waits on wireline contractor

Noble Helium Limited (ASX:NHE) has finished the roads, well pads and camp needed for its Kinambo drilling campaign, but the central event investors were waiting for has not yet happened: drilling has not resumed. Mobilisation of BoreXpert’s Schramm T130 XD rig began in September before being paused because SLB, the appointed wireline logging and downhole sampling contractor, was delayed on another project.

The company says it stood down the rig and paused the movement of personnel and equipment to minimise costs. During the delay, its geophysical and operations teams have been refining the drilling plan and assessing ways to reduce the effects of adverse weather. The selected rig is smaller and lighter than the equipment used during Noble Helium’s 2023 Mbelele campaign, requiring fewer truck movements to reach site.

The Kinambo work is intended to generate the data needed for an independent resource certifier to assess the western margin of the North Rukwa project, while potentially improving the company’s understanding of deeper eastern-margin prospects. The earlier Schramm rig appointment had positioned the campaign for two confirmed wells, with further work dependent on results. No discovery, reserve or resource upgrade is reported in this quarterly update.

Western Australian acreage expands through ESH deal

While Tanzania’s drilling timetable slipped, Noble Helium completed its acquisition of Earth Source Hydrogen in September. The transaction adds more than 40,000 square kilometres of Western Australian exploration acreage across three Special Prospecting Authorities in the Southern Carnarvon Basin, with the company holding exclusive rights to apply for exploration licences in each area. The deal converts the Earth Source Hydrogen acquisition from a proposed expansion into a completed transaction.

The acquisition consideration included 87,172,786 Noble Helium shares, issued using a 30-day volume-weighted average price of A$0.02882. Of those shares, 75,879,766 were issued to unrelated parties under available placement capacity, while Noble Helium plans to seek shareholder approval for a further 11,293,020 shares to Dennis Donald and his nominees as related parties. The company had 1.324 billion ordinary shares on issue at 30 September, alongside several option classes.

After quarter-end, Noble Helium applied for the Merlinleigh exploration permit over approximately 7,760 square kilometres within SPA 44 AO. The application followed groundwater-bore sampling that identified elevated helium and hydrogen measurements, but those results remain an exploration indication rather than evidence of a commercial resource. David Biggs, formerly Earth Source Hydrogen’s chief executive, was appointed an executive director on 16 October to support integration of the Western Australian assets and the company’s broader exploration activities.

Cash position brings capital raising back into focus

Noble Helium reported A$3.905 million in cash at 30 September, down from A$6.689 million at the prior quarter’s end. Exploration and evaluation spending accounted for A$1.882 million during the quarter, while operating cash outflows were A$549,000. On the company’s calculation, total relevant outgoings were A$2.431 million and available funding represented 1.61 quarters.

Management said negative operating cash flow is expected to continue because Noble Helium is not generating revenue. It also said the company expects to raise capital as required, pointing to A$12 million raised during the previous financial year and support from major shareholders. That is an expectation rather than committed funding, and the company reported A$1.197 million of loan facilities fully drawn at quarter-end. The A$12 million drilling raise had been intended to fund North Rukwa exploration, but the latest cash figures leave limited room for extended delays without additional financing.