Quantum Helium Limited (AIM: QHE) is advancing plans for a larger stimulation and testing programme at its Sagebrush Project in Colorado, while identifying five additional drilling opportunities across and adjacent to its existing acreage.
The company said an engineering and reservoir optimisation assessment for Sagebrush-1 is nearing completion following the Extended Production Test carried out earlier this year.
The initial programme confirmed helium-bearing gas at approximately 2.5%, strong reservoir connectivity and rapid pressure recovery, while also identifying commercial oil in the Leadville Formation.
Following acid stimulation, reservoir pressure recovered to more than 70% of estimated virgin pressure within four days, with analysis indicating recovery could exceed 90% given additional build-up time.
Although consistent flow rates were not established during the initial test, partly because of liquids build-up, Quantum said the results demonstrated strong connectivity with the natural fracture network.
The next programme is therefore expected to employ a larger stimulation treatment, designed to increase contact with those fractures and establish improved sustained gas and oil flow rates.
Final engineering recommendations are expected shortly and will determine the scope of the next Sagebrush-1 programme, which Quantum intends to fund from existing cash resources.
Five new drilling opportunities
Alongside Sagebrush-1, Quantum has identified five additional drilling opportunities as it seeks to establish a broader helium and oil business in Colorado.
Permit applications are being prepared for two of the most advanced targets, Little Ute SE and Yellow Jacket SE, both within the existing Sagebrush acreage.
Little Ute SE targets interpreted extensions of the Upper and Lower Ismay reservoirs, while Yellow Jacket SE is interpreted as an extension of the productive Upper Ismay trend.
Three larger follow-on opportunities have also emerged.
Mariano Wash SE, within the company’s Coyote Wash acreage, contains a Lower Ismay oil target with a secondary Upper Ismay objective.
Lula, on acreage adjacent to Sagebrush, is interpreted as a dip-closed Mississippian helium and oil prospect with potential for a multi-Bcf gas accumulation containing approximately 1%-2% helium or more.
Meanwhile, Sagebrush East represents a higher-impact Mississippian helium and oil prospect associated with the wider Sagebrush-1 structure.
Quantum is also preparing applications for additional acreage surrounding its existing projects.
The company currently holds independently assessed gross 2U helium resources of 1.104 Bcf across Sagebrush and Coyote Wash, alongside existing oil production and the newly identified Leadville oil opportunity.
Separately, Quantum said its proposed US OTC Markets listing is progressing, with all requested documentation submitted and the application in good standing. The review process is described as nearing completion.
Chief executive Howard McLaughlin said the work was creating a broader development pipeline alongside efforts to improve Sagebrush-1’s flow performance, with the ultimate objective of establishing a multi-field helium and oil business in Colorado.
