Shares of Helium One Group experienced a decline on Friday following the company’s announcement that it is considering alternative options for a drill rig for its Rukwa project in Tanzania. The decision was made due to concerns about its contractor.
At 0805 GMT, shares in the London-listed company were down 0.65 pence, representing a 12% decrease to 4.9 pence.
Helium One Group has issued a rectification notice to its Tunisian contractor, Sofori, after previously setting multiple deadlines for the supply of a rig to the Rukwa project. However, due to ongoing delays, neighboring operator Noble Helium has withdrawn from its own letter-of-intent with Sofori and has secured another rig from the reputable U.K. company Marriott Drilling Group.
To ensure that the drilling campaign stays on track, Helium One Group is actively reviewing and pursuing various alternative options, which may include securing the Marriott rig. This contingency plan will guarantee that the company can still achieve its goal of drilling the Tai-C well in Tanzania during the third quarter of this year.
Civil work has already commenced at the site as part of efforts to expedite the drilling campaign and prepare for the commencement of drilling.