Production has started at the Smith and Nelson Wells, which are managed by Voyager Life in partnership with M3 Helium. Significant gas pressure was observed during initial tests, which is promising for the wells’ productivity.
The wells have been noted to have high flow rates for revenue generation.
Voyager Life’s future plans include exploring and potentially developing more wells. Tulloch highlighted another site, Fort Dodge, where the Rost well shows high helium content and promising pressure levels, indicating ongoing expansion and exploration efforts.
Nick Tulloch, Chief Executive Officer of Voyager, said: “Bringing the Smith and Nilson wells into production is a significant step forward for M3 Helium. The Hugoton gas field is one of the best known sources of helium in the world and, with substantial opportunity to drill further wells in this highly prospective region, M3 Helium now has proof of concept as it looks to further expand its assets.
“The speed at which the two wells were brought into production is another reminder of M3 Helium’s competitive advantage. With access to Scout’s gathering system and its Jayhawk gas processing plant, M3 Helium has the ability to quickly monetise any new wells that it develops.
“From Voyager’s standpoint, our ultimate focus has always been to build our business to become cash flow positive. The rate of progress and development milestones already achieved by M3 Helium – in just a few weeks since we announced the proposed acquisition at the end of June 2024 – gives our management team great confidence that the business we are seeking to acquire can realistically deliver this objective.”
As announced on 27 June 2024, the Company has an option to acquire M3 Helium, a producer of helium based in Kansas and with an interest in six wells. There is no certainty that the Company’s option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.
