Quantum Helium Ltd (AIM:QHE) has begun an extended production test at its Sagebrush-1 well in Colorado, a key operational step as the AIM-listed group looks to move the helium discovery closer to reserves and future development.
The test will assess flow rates and helium concentrations at Sagebrush-1, where historic testing previously confirmed helium concentrations of about 2.76% from the Leadville Formation.
Chief executive Howard McLaughlin is on site overseeing operations, with the company describing the programme as critical to confirming the reservoir’s commercial potential.
Quantum said the well benefits from existing infrastructure and does not require new drilling, allowing for a lower-cost test programme. It added that the results will be used to inform development planning across the asset.
The company holds more than 1.1 Bcf of independently verified prospective helium resources across its Sagebrush and Coyote Wash projects. Testing is expected to continue over the coming weeks, with results to be announced after analysis is complete, it added.