Quantum Helium Ltd (AIM:QHE) said technical work at its Sagebrush-1 well in Colorado supports moving to the next phase of reservoir fracture stimulation, as the company continues its extended production test on the helium-bearing Leadville Formation.
The AIM-listed company has completed an initial acid injection programme on the upper Leadville dolomite interval at around 7,250 feet depth.
During the treatment, the formation accepted fluids at higher injection rates and pressures than in earlier operations, which Quantum said provided encouraging signs of communication with the reservoir.
The programme was designed to improve near-wellbore reservoir connectivity and reduce historical formation damage. Initial engineering analysis indicated the treatment extended beyond the immediate wellbore area and established communication with the targeted reservoir interval.
Quantum said preliminary gas analysis confirmed the raw gas produced had close similarities to gas analysis from Sagebrush-1 in 1994, which had indicated helium content of 2.76%.
Chief executive Howard McLaughlin said the extended test had “significantly improved” the company’s understanding of the Leadville reservoir, adding that the next fracture stimulation programme is designed to provide “a more meaningful assessment” of the formation’s production potential.
Quantum noted that Sagebrush-1 was originally drilled around 30 years ago and said technical and operational challenges can occur when re-entering wells of that age. The company said issues affecting testing of the lower Leadville horizon, linked to downhole testing equipment performance, have now largely been addressed.