New data supports Leadville formation prospect and identifies additional targets across Colorado licence
Quantum Helium Ltd (AIM:QHE) has confirmed the presence of a large helium-bearing structure at its Sagebrush project in Colorado following initial interpretation of a new high-resolution three-dimensional seismic survey.
The company said the newly acquired 3D dataset validated earlier mapping of the Leadville Formation structure based on reprocessed two-dimensional seismic, significantly enhancing geological confidence and continuity.
Chief executive Howard McLaughlin said: “The Sagebrush-1 well established the presence of helium in the Leadville Formation more than three decades ago, with drill stem testing recovering non-combustible gas and subsequent analysis confirming a helium concentration of 2.76%.”
“That well data, combined with reprocessed 2D seismic and independent validation by Sproule ERCE, gave us a strong technical foundation,” he added.
Quantum said the quality of the new seismic data was “excellent”, with final depth conversion due to be completed in the coming weeks ahead of detailed prospect mapping.
The Sagebrush-1 well, drilled in 1994, encountered helium-rich gas in the Leadville Formation and produced over 300,000 barrels of oil from the overlying Ismay Formation.
The company said it had also identified new oil and helium targets across Sagebrush and its adjacent Coyote Wash acreage, including seismic amplitude features in the Ismay zone interpreted as undrilled algal mounds.
Preliminary interpretation at Coyote Wash suggested that a historic well had been drilled on the flank rather than the crest of a structural feature, leaving potential for improved outcomes in future drilling.
Quantum has previously disclosed six drill-ready Leadville helium prospects and several Ismay oil targets in the Coyote Wash area.
The results are expected to reduce geological risk ahead of an extended production test at Sagebrush-1, which remains a key part of Quantum’s near-term development strategy.