Solo Oil, a natural resources investment company, has negotiated the acquisition of a 10% interest in Helium One Limited for a total consideration of $3.19m, Finfeed informed.

According to Shares Magazine, Solo has also been granted a 90-day call option to increase its investment in Helium One by a further 10%, for an additional investment of $5m, which would increase its stake to 20%.

Helium One’s major asset is Tanzania’s Rukwa Project, which is independently estimated to host to 100bcf of the helium gas.

The stake expanded Solo’s existing presence in Tanzania, which included gas production from Kiliwani North and a 25% working interest in the Ntorya gas-condensate discovery.

Solo’s Chairman, Neil Ritson, stateted that Rukwa, together with Helium One’s additional project areas at Eyasi and Balangida, represents an attractive strategic investment, especially given the helium market’s weak supply dynamics and continued demand growth.

“Given the related pricing of petroleum gas and helium, which is globally in short supply, Solo has for some time been investigating opportunities in that sector,” he added.