Quantum Helium Ltd (AIM:QHE) has mapped out five additional drilling opportunities in Colorado as it prepares a larger stimulation and testing programme at Sagebrush-1 following helium and oil results from its initial production test.
The extended production test confirmed helium-bearing gas at approximately 2.5%, alongside strong reservoir connectivity and rapid pressure recovery. It also identified commercial oil in the Leadville Formation.
Quantum said the next Sagebrush programme is expected to use a more extensive stimulation treatment to increase contact with the natural fracture network and improve sustained flow performance.
Permitting and drill planning are meanwhile advancing for Little Ute SE and Yellow Jacket SE, two near-term oil targets within the Sagebrush area. Three larger follow-on opportunities have also been identified: Mariano Wash SE, Sagebrush East and Lula. At Lula, technical interpretation points to a potential multi-Bcf gas accumulation containing around 1%-2% helium or more.
Quantum holds independently assessed gross 2U helium resources of 1.104 Bcf at Sagebrush and Coyote Wash.
Final engineering recommendations for Sagebrush-1 are expected shortly and will determine the scope of the next programme, which will be funded from existing cash resources.
