Noble Helium Ltd (ASX:NHE, OTC:NBHEF, FRA:GN1) has outlined plans for its upcoming North Rukwa drilling program in Tanzania while highlighting growing disruption across the global helium market that could strengthen future demand for new supply sources.
Executive chairman Dennis Donald told Proactive that Russia’s decision to halt helium exports, combined with prolonged production issues affecting Qatar, had potentially placed up to 40% of global helium supply into question.
Donald said the market disruption created a significant opportunity for companies capable of delivering large-scale helium supply outside traditional hydrocarbon-linked production regions.
Kinambo drilling campaign advances
Noble Helium is advancing its Kinambo drilling campaign within the Rukwa Basin, where the company has already certified a prospective helium resource of 225 billion cubic feet.
By comparison, Donald noted that annual global helium demand currently sits at approximately 6 billion cubic feet.
He said the scale of the company’s resource position could prove attractive to large industrial consumers seeking supply certainty.
North Rukwa Helium PLs and Leads to date.
Customer discussions underway
Donald stated that several major helium users had already approached Noble Helium and discussions were underway regarding future supply opportunities.
The company expects drilling to begin during the first two weeks of July, following months of technical preparation and geological analysis.
The program has undergone extensive peer review by leading international experts and advisory board members.
Donald described the project as “probably the best prepared well I’ve ever drilled in my life,” adding that recent geological de-risking work had produced “extremely encouraging” early indications.
Strategic role of helium
Noble Helium’s management also emphasised the strategic importance of helium supply amid increasing geopolitical concerns and accelerating demand from emerging technologies including artificial intelligence, medical imaging, nuclear fusion and space applications.
Donald suggested helium could increasingly be viewed in the same strategic category as rare earth elements, particularly as governments and industries seek secure and geopolitically independent supply chains.
Non-hydrocarbon supply focus
A further point of differentiation for Noble Helium is the company’s positioning as a non-hydrocarbon sourced helium producer.
More than 95% of global helium production currently comes from hydrocarbon processing, but Donald said market sentiment was gradually shifting toward alternative supply sources.