Noble Helium Ltd (ASX:NHE, OTC:NBHEF, FRA:GN1) earlier this week outlined the final operational preparations for drilling at the Kinambo prospect within the North Rukwa Project in Tanzania, with the company targeting a late-August spud.
Chief Operating Officer Dermot O’Keeffe said almost every planned workstream had been completed ahead of the campaign. The contracted rig was expected to begin mobilisation shortly and move to the first well location around the middle of August.
O’Keeffe said the Kenyan-based contractor would deploy Bore Experts’ truck-mounted SR-130 XD rig. He explained that the unit offered the depth capability required to test the primary targets while retaining sufficient mobility to move between locations should Noble Helium exercise options for additional wells.
The company had also advanced road construction and upgrades, camp development and site infrastructure. A self-contained camp capable of supporting 56 people was nearing completion and would provide accommodation, catering, power, water and communications throughout the programme.
O’Keeffe noted that road access represented a significant part of the preparation because Kinambo was located in a remote area of the North Rukwa Basin. The upgraded routes were designed to accommodate the rig, heavy equipment and bulk deliveries of fuel and water.
A further potential scheduling risk had been reduced through the early procurement of long-lead items. O’Keeffe said casing, wellhead equipment, drilling fluids, cementing products, spare parts and specialist testing equipment were already in Tanzania and staged for mobilisation.
“Everything’s now in country and staged, ready to be mobilised to site,” he said.
The principal catalyst will be the commencement of drilling, followed by updates on operational progress and the geological data recovered from the wells. Kinambo is intended to test shallow and deep helium-bearing structures identified through 3D seismic reprocessing and gravity studies.
O’Keeffe said the campaign represented the first substantive subsurface test of a prospect that had undergone extensive technical de-risking. A discovery could also strengthen Noble Helium’s position as it seeks a partner for the eastern side of the lake, where the company believes 98% of its certified 235 billion cubic feet of helium resource is located.
He said safety, well integrity and data quality would remain central once drilling began.
“We’ve done the work so that, once the rig spuds, the focus is purely on drilling a safe, technically sound well and making sure that the data we collect is of the highest standard,” O’Keeffe said.
The market’s attention is therefore likely to focus on rig mobilisation, the formal spud announcement and subsequent drilling results from the Kinambo wells.
Interview highlights
- Noble Helium had completed almost all planned pre-drilling work ahead of the Kinambo campaign.
- The contracted truck-mounted rig was expected to begin mobilisation shortly and move to the first well location around mid-August.
- The company was targeting a late-August spud, subject to final commissioning and normal operational contingencies.
- Road construction, equipment-storage areas and well-site access were nearing completion.
- A self-contained camp for 56 people was being commissioned to provide accommodation, catering, power, water and communications.
- All major long-lead items were in Tanzania and staged for mobilisation, including casing, wellhead equipment, drilling fluids, cementing products and testing equipment.
- Site-specific emergency response and medical evacuation plans had been prepared.
- The Kinambo wells were designed to test shallow and deep helium-bearing structures identified through 3D seismic reprocessing and gravity work.
- A discovery could support Noble Helium’s objective of bringing in a partner for the eastern side of the lake.
- O’Keeffe said the company’s priority after spud would be to drill safely, deliver a technically sound well and collect high-quality data.
Proactive: As rig mobilisation nears for the Kinambo wells at the North Rukwa Project in Tanzania, we sat down with Noble Helium Chief Operating Officer Dermot O’Keeffe to discuss the operational build-up and what to expect as drilling gets underway. Dermot, good to have you.
Dermot O’Keeffe: Thanks for having me, Jonathan. I’m looking forward to having a chat.
Proactive: It’s a pleasure to have you. Let’s start with the upcoming spud. Where do things stand right now?
Dermot O’Keeffe: We’re in pretty good shape. Almost every piece of work that we set out to complete ahead of drilling is done.
The rig has been contracted and will commence mobilisation shortly. It is expected to move into position at the first well location around the middle of August.
It will then be rigged up, with final inspections conducted before spud. The roads into the camp location, equipment storage area and well sites are almost complete, while all our long-lead items are either in Tanzania or ready to be mobilised to the location.
Construction of the 56-person camp is nearing completion. Following a commissioning programme, it will be ready to house the crew in early August.
This is the position every operations team wants to be in ahead of a campaign: nothing left to chase, just execution.
Proactive: There is plenty to look forward to. Let’s start with the rig. What have you secured, and why did you make that choice?
Dermot O’Keeffe: We’ve gone with a Kenyan-based contractor. We’re using Bore Experts’ SR-130 XD, which is a well-proven, truck-mounted rig that suits the geology and logistics of this location.
It gives us the depth capability required for the primary targets while remaining mobile enough to move efficiently between well locations should we exercise our options for further wells.
Proactive: Safety is obviously front of mind, particularly at a remote site. How are you managing that?
Dermot O’Keeffe: Safety is built into every one of the workstreams we’ve discussed. It is not treated as a separate box-ticking exercise.
Our team will conduct inductions for every person mobilising to site. We also have emergency response and medical evacuation plans specific to the location.
The camp and road infrastructure have been designed with safe, controlled access in mind from day one. We also hold ourselves to international standards for well control and health, safety and environment, regardless of the jurisdiction.
Proactive: You mentioned a camp for 56 people. Can you talk us through that side of the operation?
Dermot O’Keeffe: Drilling programmes really live or die on the welfare of the people running them, so the camp has received just as much attention as the technical planning.
We’ve built accommodation, catering, power, water and communications infrastructure to support a workforce of 56 people on site throughout the campaign. I’ll also be there myself as part of that team.
The workforce includes the rig crew, our operations personnel, medical personnel, catering and camp management staff, equipment operators and drivers, as well as specialists working on well logging and sampling operations.
It is a self-contained facility, which matters given how remote North Rukwa is.
Proactive: Let’s talk about the roads. How significant was that piece of work?
Dermot O’Keeffe: It is more significant than people outside the industry often appreciate.
Kinambo sits in a remote part of the North Rukwa Basin, so before a rig or any equipment can move to site, reliable all-weather access is needed.
We’re completing the road construction and upgrades required to move heavy equipment safely. That includes sections capable of handling rig components, as well as bulk fuel and water deliveries to the drilling locations.
That work is now well advanced, and it de-risks the entire mobilisation process.
Proactive: I also want to discuss the long-lead items. Why do they matter so much to the schedule?
Dermot O’Keeffe: Long-lead items are the items with the longest procurement and shipping timelines.
They include casing, wellhead equipment, drilling fluids and cementing products, spare parts, and specialised drilling and testing equipment. These items can take months to source and freight into Tanzania.
If any one of them is delayed, it can hold up the whole programme, regardless of how ready everything else is.
We started procuring these items well ahead of time, and I can confirm that everything is now in Tanzania and staged, ready to be mobilised to site.
Proactive: With everything in place, what is the sequence from here to spud?
Dermot O’Keeffe: Once the civil works are complete and we’ve commissioned the camp, the rig will be moved onto location and rigged up.
We’ll then complete the final safety inductions and commissioning checks across the site.
Barring any last-minute issues, although contingency is always built into a remote operation like this, we are currently on track to spud in late August.
Proactive: What is Kinambo targeting, and why do these wells matter for Noble Helium?
Dermot O’Keeffe: Kinambo sits on the western flank of our North Rukwa Project. The wells are designed to test both shallow and deep helium-bearing structures identified through our 3D seismic reprocessing and gravity work.
It is the final real subsurface test of a prospect that Justin and his team have spent a long time de-risking on paper.
A discovery here would represent a major step towards our goal of bringing in a partner on the eastern side of the lake, where we believe 98% of our certified 235 billion cubic feet of helium is located.
That is exactly why we have been so disciplined about getting the operational readiness right for Kinambo.
Proactive: To wrap up, do you have any final message for shareholders from an operational perspective as the programme begins?
Dermot O’Keeffe: This is the result of a long period of disciplined, methodical preparation. The team on the ground in Tanzania deserves real credit for getting us to this point.
We’ve done the work so that, once the rig spuds, the focus is purely on drilling a safe, technically sound well and ensuring that the data we collect is of the highest standard.
We’ll keep the market updated as the programme progresses.
Proactive: Dermot, there is lots to look forward to. Thanks for your time, and I hope everything goes well for you on site.
Dermot O’Keeffe: Thank you, Jonathan. Good to talk to you.
