Helium One shares rose by 20% following positive announcements about a mining license in Tanzania and successful gas flow from the Jackson-31 well in Colorado. A broker has maintained a ‘Buy’ rating with a target price of 3.6p, citing strong potential for increased production and further growth.
Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) experienced a significant surge in its share price, jumping about 20% in early trading. Priced at 1.08p, shares rose by approximately 18% by the afternoon, driven by two major announcements regarding its projects in Tanzania and Colorado. Despite this increase, a City broker has maintained a ‘Buy’ recommendation, suggesting further potential for share price growth.
The company has received news that it has been offered a mining license in Tanzania, specifically for its Rukwa Helium Project, which spans around 480 square kilometers. This mining license represents an important step toward commercial development. Analyst Ashley Kelty from Panmure Liberum expressed optimism, stating that agreement on the license’s terms is likely imminent, which could lead to production beginning in the first half of 2025.
In addition, Helium One announced that the Jackson-31 well in Colorado was successfully completed, with initial results confirming gas flow. The well encountered a 57-foot gas-saturated zone in the Upper Lyons Sandstone Formation. It has been drilled to a total depth of 1,210 feet and is set for further testing as the wellhead configuration is finalized.
Helium One’s share price increased significantly following positive developments in Tanzania and Colorado. The company’s receipt of a mining license offer for the Rukwa Helium Project bodes well for future production, while the successful gas flow from the Jackson-31 well enhances its operational prospects. Analysts remain bullish, predicting further share price growth based on these encouraging updates.
Original Source: www.proactiveinvestors.com
