Quantum Helium Limited (AIM: QHE) has reported gross oil revenue of US$316,263 from its Sagebrush Project during the first half of 2026, as stronger commodity prices and additional production from the Sagebrush-1 extended production test boosted second-quarter income.
The company, which holds a 90% working interest in the project, produced 5,141 barrels of oil on a 100% gross project basis during the six months to 30 June.
Second-quarter gross oil revenue reached US$207,975, an increase of approximately 92% compared with the US$108,288 generated during the first quarter.
Gross oil production rose from 2,482 barrels in Q1 to 2,659 barrels in Q2.
Quantum said its average realised oil price increased significantly during the second quarter, reaching US$78.29 per barrel, while all oil sales remain unhedged.
The company also generated additional oil sales following the successful extended production test at the Sagebrush-1 well.
Testing confirmed commercial oil production from the Leadville Formation alongside helium-bearing gas. Oil recovered during the programme was separated, stored and subsequently sold, contributing additional revenue during the second quarter.
Chief executive Howard McLaughlin said the results demonstrated the continuing value of Quantum’s producing oil assets, with stronger oil prices helping drive a substantial increase in second-quarter revenue.
He said the Sagebrush-1 testing programme was particularly encouraging because, while its primary objective is to evaluate the helium reservoir, it also generated immediate oil revenue and confirmed a new productive horizon.
Quantum said the Leadville Formation was not included in previous independent resource assessments, and the company believes confirmation of commercial oil production from the interval enhances the project’s long-term value.
Existing oil production continues to generate cash flow as Quantum advances its broader strategy of developing its helium assets in the United States.
The company has independently assessed helium resources of more than 1 billion cubic feet across the Sagebrush and Coyote Wash projects.
Quantum said the combination of existing oil production, additional revenue generated during testing and the newly confirmed commercial oil potential at Sagebrush-1 strengthens its Colorado portfolio and supports ongoing exploration, appraisal and development activities.
The company expects to provide further updates on helium flow testing at Sagebrush once the current programme has been completed.
The reported production and revenue figures are stated on a 100% gross project basis before transport and operating costs and have not been adjusted for Quantum’s 90% working interest, royalties, severance taxes or other applicable deductions.
