Initial 3D Seismic Review Confirms Large Potential Leadville Helium Structure At Sagebrush
Quantum Helium Limited (AIM: QHE) is pleased to provide an update on the interpretation of the recently acquired high-resolution 3D seismic survey at its Sagebrush Helium Project in Colorado.
Highlights
· Initial processing of the Sagebrush high-resolution 3D seismic survey completed
· Historic Sagebrush-1 well confirmed as a dual oil and helium well, with the Ismay Formation producing over 300,000 barrels of oil and a deeper Drill Stem Test in the Leadville Formation flowing non-flammable gas containing 2.76% helium
· Initial interpretations suggest large potential helium-bearing Leadville structure consistent with historic well data and prior independent evaluation
· 3D seismic confirms the structural interpretation previously mapped from reprocessed 2D seismic
· Early identification of new potential oil and helium targets at Sagebrush and Coyote Wash
· Results materially de-risk the planned extended production test at Sagebrush-1
Sagebrush – 3D Seismic Update (See Figure 1)
Initial processing of the Sagebrush 3D seismic dataset has now been completed, with interpretation work progressing across both helium and oil targets.
The Sagebrush-1 well, drilled in 1994, intersected the Leadville Formation and recovered non-combustible gas during drill stem testing, with subsequent gas analysis confirming a helium concentration of 2.76%. Initial interpretations suggest this well data established the presence of a potential helium-bearing accumulation within the Leadville Formation and forms the foundation of the Company’s helium strategy at Sagebrush.
In 2024, the Company reprocessed existing 2D seismic data across the Sagebrush area, which allowed the Leadville structure hosting the Sagebrush-1 discovery to be mapped and its size and geometry better defined. This work was subsequently reviewed and confirmed by Sproule ERCE as part of the independent Sagebrush resource evaluation.
The newly acquired 3D seismic survey has now confirmed the Leadville structure previously mapped from the reprocessed 2D seismic, while providing significantly improved resolution, continuity and structural confidence. This confirmation of the existing interpretation was a core strategic objective of the 3D seismic programme.
Overall seismic data quality is excellent. Once final depth conversion is completed in the coming weeks, detailed prospect mapping will commence across the survey area.
A second key objective of the 3D seismic programme was to identify additional oil prospectivity. At the Ismay Formation level, where the Company has existing oil production, early interpretation has identified encouraging seismic amplitude responses that conform closely with the original Sagebrush Ismay oil discovery. Similar amplitude features are present nearby and may represent previously undrilled algal mound features, which are now being evaluated as potential new oil drilling targets through ongoing calibration with existing well, log and core data.
Figure 1: Preliminary Sagebrush Area Amplitudes at Ismay Level
Coyote Wash – Early Observations (See Figure 2)
Within the Company’s southern Coyote Wash acreage, preliminary seismic interpretation continues to support the view that the historic Mariano Wash 1-1 well was drilled near the edge of a larger structural feature. Seismic amplitudes indicate that the crest of the structure – typically the most prospective part of the trap – may not have been tested. These observations are based on early-stage interpretation and remain subject to further detailed analysis, calibration and integration with additional subsurface data. While this work is ongoing, the current dataset supports the potential for materially improved results from a future well drilled on the interpreted structural high.
Coyote Wash is at a more advanced stage of interpretation overall, with the Company having previously disclosed six drill-ready Leadville helium prospects, together with additional Ismay oil targets, all of which will be further refined as interpretation and confirmatory work progresses.
Figure 2: Mariano Wash Amplitude on New 3D and Prior to New 3D
Howard McLaughlin, Chief Executive of Quantum Helium, commented: “The Sagebrush-1 well established the presence of helium in the Leadville Formation more than three decades ago, with drill stem testing recovering non-combustible gas and subsequent analysis confirming a helium concentration of 2.76%. That well data, combined with reprocessed 2D seismic and independent validation by Sproule ERCE, gave us a strong technical foundation.
One of the primary objectives of the 3D seismic programme was to confirm that interpretation, and the new data has done exactly that – clearly validating the size, geometry and continuity of the Leadville structure we had previously mapped. The quality of the data is excellent and materially strengthens our confidence as we move towards testing the Leadville in Sagebrush-1.
The second objective of the survey was to identify new oil prospectivity, and we are encouraged by early indications at the Ismay level, where seismic amplitudes mirror the original Sagebrush oil discovery and suggest the presence of additional undrilled algal mound features. Together, these preliminary results significantly de-risk the next phase of activity and reinforce the broader development and growth potential across both Sagebrush and Coyote Wash.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (‘MAR’) which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon publication via Regulatory Information Service (‘RIS’), this information is now in the public domain
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Quantum Helium Limited Carl Dumbrell Chairman |
