Extended Production Test Commences at Sagebrush-1
Quantum Helium Limited (AIM: QHE) is pleased to announce that the extended production test at the Sagebrush-1 well in Colorado has now commenced. Chief Executive Officer, Howard McLaughlin, is on site overseeing operations as the Company moves into this critical phase of activity.
Highlights
· Extended production test underway at Sagebrush-1
· CEO on site to oversee testing operations
· Test to evaluate flow rates and helium concentrations
· Key step towards converting prospective resources into reserves
· Results expected to inform development planning
Sagebrush-1 – Key Milestone
Sagebrush-1 is a proven helium discovery well, with historic testing confirming helium concentrations of approximately 2.76% from the Leadville Formation.
The extended production test is designed to establish flow characteristics and confirm the commercial potential of the reservoir. This represents a critical step in advancing the Company’s prospective helium resources towards reserves and underpins future development planning.
The well benefits from existing infrastructure and does not require new drilling, allowing for a low-cost and efficient test programme.
Strategic Context
Quantum holds over 1.1 Bcf of independently verified prospective helium resources across its Sagebrush and Coyote Wash projects, positioning the Company as one of the largest verified helium resource holders among London-listed peers.
The commencement of testing at Sagebrush-1 represents a major value inflection point, moving the Company from discovery towards potential production.
With global helium markets tightening and spot prices rising significantly, the Company believes this test is well timed within a highly supportive macro environment.
Outlook
Testing is expected to run over the coming weeks, with results to be announced once analysis has been completed.
Howard McLaughlin, Chief Executive Officer of Quantum Helium, commented: “Commencing the extended production test at Sagebrush-1 is a major milestone for Quantum and an important step forward for the Company.
This well has already demonstrated the presence of helium, and this programme is focused on confirming flow rates and commercial potential. The results will be critical in moving our prospective resources towards reserves and defining the pathway to development.
We will keep shareholders informed as testing progresses and look forward to reporting the results in due course.
With strong momentum across our Colorado portfolio and increasing global demand for helium, we believe this is a highly significant phase for the Company.”
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 |
