Quantum Helium Ltd (AIM:QHE) said it expects to complete the first commercial sale of oil from its Sagebrush-1 well in Colorado this month, adding a source of revenue alongside the project’s helium potential.
Extended production testing has confirmed commercial oil output from the Leadville formation, helium concentrations of around 2.5% and reservoir pressures approaching virgin conditions. The company said an extensive natural fracture network supports both the oil and helium resources.
Quantum is continuing reservoir clean-up, pressure build-up testing and wellbore treatment before establishing representative sustained production rates.
Once production stabilises, independent auditor Sproule ERCE will be asked to update the project’s resource assessment to incorporate the oil discovery and latest production data.
The company is also evaluating a multi-well drilling programme across its Colorado acreage. Seven of its eight existing producing oil wells are currently online and generating revenue.
Separately, Quantum has started applying for a secondary quotation on the US OTC Markets, which it expects to complete within around four weeks. The quotation will not involve issuing new shares or increasing its reporting obligations.
