The strategic importance of helium in modern industry
Helium One Global has positioned itself at the forefront of the global effort to address the looming helium supply crisis. As the world’s demand for helium continues to outpace supply due to its critical applications in medicine, aerospace, electronics, and quantum computing, Helium One offers a compelling proposition: unlocking one of the few untapped sources of helium on Earth in Tanzania’s Rukwa Basin.
Helium is far more than a party balloon gas. Its unique physical properties — inert, non-reactive, with a low boiling point — make it irreplaceable for applications like MRI machines (cooling superconducting magnets), semiconductor manufacturing, space exploration (as a purge gas for rocket fuel systems), nuclear power and fusion research, and leak detection and fibre optics.
Yet, helium is rare and non-renewable on Earth. Historically sourced as a by-product of natural gas production, recent geopolitical tensions and declining production from legacy fields (e.g., the US Federal Helium Reserve) have strained supply chains and driven prices higher.
The growing importance of quantum computing, advanced medical imaging, and aerospace applications has created increasing strategic demand for helium at a time when traditional supply sources are becoming less reliable, creating significant opportunities for new primary helium producers.
Helium One’s unique proposition and Tanzania focus
Helium One is not a traditional hydrocarbon explorer. Its sole focus is on primary helium, independent of hydrocarbon production. The company’s flagship project is the Rukwa Project, located in southwestern Tanzania — a region with high helium concentrations in subsurface gas shows, some as high as 10.6%, compared to typical commercial grades of just 0.3–1%.
The company maintains 100% ownership of three project areas: Rukwa, Eyasi, and Balangida. The Rukwa Basin alone has an estimated Prospective Resource of 138 Bcf (billion cubic feet) of helium, with multiple identified closures and leads from seismic and gravity data.
Exploration wells have shown strong helium shows, validating the basin’s potential and demonstrating that Tanzania could become a significant new source of this critical resource. The high concentrations discovered suggest that commercial production could be viable with relatively modest infrastructure investment.
This focus on primary helium production, rather than helium as a by-product, provides Helium One with operational flexibility and the potential for higher margins if commercial discoveries are made and successfully developed.
Recent exploration progress and technical developments
In early 2024, Helium One drilled the Tai-3 well — a follow-up to Tai-1 and Tai-2 — which delivered strong gas shows and promising wireline logging results. Although technical issues limited the initial testing phase, the well confirmed the presence of helium-rich zones and tight formations, suggesting further drilling and stimulation (e.g., nitrogen lift or micro-frac) could enhance results.
The company also secured a new drill rig under a more favourable contract and completed a significant seismic reprocessing programme, which improved subsurface imaging and derisked future targets.
These technical advances demonstrate Helium One’s commitment to applying appropriate technology to unlock Tanzania’s helium resources, while the improved contract terms suggest better cost control for future drilling campaigns.
The seismic reprocessing work has enhanced understanding of the subsurface geology and identified additional prospects, potentially expanding the resource base and improving the probability of successful future drilling campaigns.
Investment opportunity and risk assessment
The bullish thesis for Helium One centres on its first mover advantage in an emerging helium province, combined with tight global supply and increasing strategic demand. Exploration success would transform Helium One into a vital supplier outside North America and the Middle East.
Tanzania’s supportive regulatory environment and infrastructure development, including a planned LNG hub, could fast-track monetisation of any commercial helium discoveries. The government’s commitment to developing its energy sector provides a favourable backdrop for international commodity exploration companies.
However, exploration risk remains high, as commercial flow rates are not yet proven. The remote location increases logistical costs, while financing remains crucial as additional capital will likely be required for development phases.
Market volatility in junior explorers could affect the share price regardless of technical progress, making this investment suitable primarily for risk-tolerant investors who understand the speculative nature of early-stage resource exploration.
Market dynamics driving helium demand
Global helium supply constraints have intensified as traditional sources decline and geopolitical tensions disrupt established supply chains. The closure of the US Federal Helium Reserve and production issues at major facilities have contributed to supply tightness.
Demand continues to grow driven by expanding applications in healthcare, technology, and aerospace sectors. The proliferation of MRI machines globally, growth in semiconductor manufacturing, and emerging quantum computing applications all require substantial helium supplies.
Price volatility has increased significantly, with helium prices reaching historic highs during supply disruptions. This price environment makes new primary helium sources increasingly attractive from an economic perspective, potentially supporting the development of previously marginal projects.
Strategic stockpiling by major consumers and governments has added another layer of demand, as industries seek to secure supply chains for this critical industrial gas that has few viable substitutes for most applications.
Future development pathway and commercialisation strategy
Helium One’s upcoming plans include extended well testing, possible horizontal sidetracks, and farm-out or joint venture discussions. With further funding and operational progress, the company has the potential to transform Tanzania into a global helium hotspot — and to become a key player in a critically strategic market.
The farm-out discussions are particularly important as they could provide both funding for continued exploration and technical expertise from established players in the helium or broader energy sectors. Such partnerships could accelerate development timelines and reduce project risks.
Infrastructure development in Tanzania, including potential connections to planned LNG export facilities, could provide cost-effective routes to international markets for any helium production, improving the economics of commercialisation.
The company’s focus on multiple prospects within its licence areas provides operational flexibility and multiple opportunities for discovery, reducing reliance on any single prospect for commercial success.
Helium One share price technical analysis
The Helium One share price, down over 17% year-to-date, has been supported by the 0.80 pence zone since September 2024 and been capped by its 55-week simple moving average (SMA) at 1.03p since then.