Sagebrush -1 well frac and flow test planned for 4Q 2026
Quantum announced completion of a technical review of the stimulation and completion data from the Sagebrush -1 well with IPT Well Solutions. The company targets a new stimulation programme on Sagebrush -1 during 4Q26 to enable flow testing of the well, subject to regulatory approvals. We maintain our Speculative Buy rating and adjust our target price to 6p/sh,
which follows the share consolidation and reflects the updated Risked NAV.
Fracture stimulation on Sagebrush -1 well targeted for 4Q26
Quantum has completed a detailed technical review of the stimulation and completion data of the Leadville Formation on the Sagebrush -1 well (90% WI) in Colorado with its new specialist completion adviser, IPT Well Solutions. IPT’s review indicates the mineralogy and oil- in- place may have reduced the efficacy of the previous acid – based treatment that would instead respond to a more conventional propped fracture stimulation. The Company now plans a fracture stimulation of the Upper Leadville reservoir in Sagebrush -1 during 4Q26 with a larger – volume treatment that is expected to improve reservoir connectivity, establish commercial helium gas flow rates and appraise the oil potential.
Well test results will inform the 2027 drilling programme
IPT is now progressing the detailed execution design for the Sagebrush -1well , including revised fracture modelling, completion procedures and engagement with stimulation service providers regarding equipment availability. In tandem, Quantum will contact the regulatory authorities to obtain approval for a more significant fracture stimulation on the target reservoir . The technical data generated by the Sagebrush -1 well stimulation and subsequent flow evaluation will then be integrated with the Company’s existing seismic, geological and reservoir data . This will assist determining the location, design and sequencing of future drilling activity across the Sagebrush and Coyote Wash project areas.
Strong balance sheet with improving access to capital pools
Quantum reported ~£5.5m cash and no debt as at June 30, which provides substantial financial capacity to fund its current exploration, development, operating and working – capital requirements. Utilising a small part of this cash balance, the Company has invested £250k into a strategic equity investment in Herencia Resources, which has the potential for capital appreciation as its gold project advances. In a media interview ( link ) earlier this week , the executive team also discuss the impact from the OTC Markets quotation (QHELF) going live, which is expected to increase stock accessibility to US – based investors and thereby has the potential to attract a broader range of shareholders.
Reiterating SPECULATIVE BUY rating with revised 6p/sh TP
We update our financial forecasts and NAV for the FY26 results and adjust our calculations for recent news flow , as well as the 100 -to-1 share consolidation. As a result, w e adjust our target price from 0.08p to 6p/sh, which is based on the Risked NAV of the Company’s portfolio and provides 275% of potential upside . The progress in testing the helium potential at Sagebrush comes at a time of increasing global focus on helium supply security, with recent geopolitical developments in the Middle East disrupting a significant portion of global production leading to greater recognition of domestic capacity, particula rly in the United States. We expect a steady stream of news flow over the next 12M to validate Quantum’s more than 1bcf helium prospective resource estimates and further de – risk the wider portfolio, as well as providing the technical data needed to advance targets towards drill ready statu s in 2027.
