Voyager Life PLC – Helium production commences at two further wells

Voyager is pleased to announce that the Smith and Nilson wells owned by M3 Helium Corp. (“M3 Helium”) are now in production and tied into the gathering system owned by Scout Energy Partners (“Scout”).  Sales of helium and methane will generate revenue for M3 Helium, and the Company currently anticipates receiving these revenues on a monthly basis.

M3 Helium owns a 100 per cent. working interest in the Smith and Nilson wells, both of which have been previously tested at high pressures capable of producing economic flow rates.  The wells recorded respective pressures of 174psi (pounds per square inch) and 180psi respectively (in tests carried out by Precision Wireline and Testing).  The tie in to Scout’s infrastructure was concluded recently with production beginning almost immediately thereafter.  Scout’s gathering network is connected to the Jayhawk gas processing plant which produces methane, helium, nitrogen and natural gas liquids.

The Company expects that production levels will take a few weeks to stabilise, and at this point, helium content is anticipated to be in the region of 0.635 per cent., based on a non JORC compliant competent person’s report previously prepared for M3 Helium by WSP.  Management of M3 Helium are accordingly optimistic about the potential revenue capability from the wells.

As previously announced, Smith and Nilson are to the east of the core part of the Hugoton gas field in what is known as the transition zone.  It is M3 Helium’s belief that this lesser produced area could provide considerable upside to the company by accessing formations previously overlooked by other operators. 

M3 Helium’s next project, which is already underway, is to bring its Rost well at Fort Dodge into production.  As announced on 15 July 2024, this has been tested by Shamrock Gas Analysis, Inc. as containing 5.1 per cent. helium. 

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.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

ENDS

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