Quantum Helium Ltd (AIM:QHE) said first-half gross oil revenue from its Sagebrush Project reached US$316,263, as stronger realised prices and extra sales from the Sagebrush-1 test lifted second-quarter income sharply.
The AIM-listed company reported Q2 gross oil revenue of US$207,975, up around 92% from US$108,288 in the first quarter. Gross oil production totalled 5,141 barrels in the first half, with 2,659 barrels produced in Q2 against 2,482 barrels in Q1.
Average realised oil prices rose to US$78.29 per barrel in the second quarter from US$57.44 in the first. Quantum said the figures were reported on a 100% gross project basis, before transport costs, operating expenses, royalties, severance taxes and other deductions, and were not adjusted for its 90% working interest.
Additional oil was sold after the ongoing Sagebrush-1 extended production test confirmed commercial oil production and helium-bearing gas from the Leadville Formation. The company said the interval had not been included in previous independent resource assessments.
Chief executive Howard McLaughlin said the test had produced “immediate revenue alongside confirming a new productive horizon”. Quantum expects to provide further updates on helium flow testing at Sagebrush once the current programme is completed.
