Quantum Helium Ltd (AIM:QHE) has received regulatory approval from the Bureau of Indian Affairs (BIA) to assume operatorship of its Sagebrush project in Colorado, clearing the final hurdle before an extended production test at the site.
Mobilisation for the test at the Sagebrush-1 well is expected to commence shortly after Easter, with operations set to run over several weeks.
The approval follows an extensive engagement process with regulatory authorities and stakeholders, including a company visit to Colorado that involved meetings with the Ute Mountain Ute Tribe and local regulatory bodies.
The Sagebrush-1 well has previously encountered non-combustible gas with measured helium concentrations of approximately 2.76%, providing technical validation of the helium potential within the Leadville Formation, the geological layer being targeted.
The upcoming test is designed to assess flow rates and confirm whether the project can deliver gas at commercially viable volumes, with a successful outcome expected to support the conversion of the company's existing helium resources into reserves.
Quantum holds over 1 billion cubic feet (Bcf) of independently assessed prospective helium resources across its Sagebrush and Coyote Wash projects in Colorado, providing the foundation for potential future development.
The company's strategy combines helium exploration with existing oil production, which generated more than $600,000 in gross revenue in 2025, providing financial support as it advances towards helium production.
The update arrives against a backdrop of tightening global helium supply, with industry sources indicating that up to one-third of global production has been disrupted by recent geopolitical developments in the Middle East, prompting suppliers to implement allocation measures and prioritise critical end markets including medical imaging, semiconductor manufacturing and aerospace.
Chief executive Howard McLaughlin said Sagebrush-1 had already demonstrated the presence of helium, and that the upcoming test was focused on confirming its commercial potential.
Extensive planning and procurement of long-lead items have already been completed, allowing the company to move efficiently into the testing phase.