Quantum Helium (QHE) has provided an update on engineering work at its 90%-owned Sagebrush project in Colorado, alongside progress on five additional drilling opportunities across its Colorado portfolio.
The company is finalising an engineering assessment following the Sagebrush-1 Extended Production Test (EPT), which confirmed helium-bearing gas at about 2.5%, strong reservoir connectivity and rapid pressure recovery. Commercial oil was also identified in the Leadville Formation.
The next Sagebrush-1 programme is expected to include a larger stimulation treatment to increase contact with the reservoir's natural fracture network and improve sustained flow rates. Final recommendations are expected shortly, with the programme to be funded from existing cash resources.
The EPT showed reservoir pressure recovering to more than 70% of estimated virgin pressure within four days following the initial acid stimulation, with analysis indicating recovery could exceed 90% with additional build-up time.
Meanwhile, Quantum is preparing permit applications for the Little Ute SE and Yellow Jacket SE oil targets within the Sagebrush project area. Three larger follow-on prospects - Mariano Wash SE, Lula and Sagebrush East - have also been identified across existing and adjacent acreage.
Mariano Wash SE, within the Coyote Wash project, is a Lower Ismay oil target with a secondary Upper Ismay objective. Lula is a potential multi-billion cubic feet helium and oil accumulation, with interpreted helium concentrations of about 1-2% or more, while Sagebrush East is a higher-impact Mississippian helium and oil prospect linked to the wider Sagebrush-1 structure.
Quantum also said it is preparing applications for additional acreage around its existing projects, which could increase its exposure to geological trends identified through recent technical work.
The company holds independently assessed gross 2U helium resources of 1.104 billion cubic feet across Sagebrush and Coyote Wash, alongside existing oil production and newly identified Leadville oil potential.
“Our work at Sagebrush continues to strengthen our confidence in the project. The initial programme confirmed helium at approximately 2.5%, strong reservoir connectivity and rapid pressure recovery, while also identifying commercial oil within the Leadville Formation,” said Quantum Helium Chief Executive Officer Howard McLaughlin.
“The engineering and optimisation assessment is now shaping a more extensive stimulation and testing programme designed to increase reservoir contact, improve Sagebrush-1 flow performance and provide the technical foundation for the next stage of commercial development.”
Quantum also confirmed that its proposed OTC Markets listing application is in good standing, with the review process nearing completion.
View from Vox
The latest results support Quantum's strategy of building a broader Colorado helium and oil portfolio. The planned Sagebrush optimisation, near-term oil targets and larger follow-on prospects provide multiple opportunities to advance the company's resource base and development pipeline.