Shares in Quantum Helium (QHE ) ticked up by more than 5% after the company announced second quarter gross revenue of just under US$208,000 from oil production at the Sagebush project in Colorado.
That number brings total first half production to just over US$316,000.
The news follows confirmation from extended well testing at Sagebrush-1 that showed the potential for commercial oil production, as well as the presence of significant helium-bearing gas, the primary target.
"Our second quarter oil production results demonstrate the continuing value of Quantum's producing oil assets, with stronger oil prices driving a significant increase in revenues during the period,” said Howard McLaughlin, chief executive of Quantum Helium.
“Importantly, the successful Sagebrush-1 extended production test also generated additional oil sales after confirming commercial oil production from the Leadville Formation. While the primary objective of the programme remains to evaluate the helium reservoir, it was particularly pleasing that the testing also produced immediate revenue alongside confirming a new productive horizon. The combination of existing production, additional revenues generated during testing and the recently confirmed commercial oil potential further strengthens the Sagebrush project. Together with our independently assessed helium resources of more than one billion cubic feet, these revenues continue to support our broader exploration, appraisal and development activities across our Colorado portfolio.”
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With independently assessed helium resources of more than a billion cubic feet across the Sagebrush and Coyote Wash projects, together with existing oil production and the recently confirmed commercial oil potential at Sagebrush-1, Quantum believes it is well positioned to continue advancing its portfolio while maintaining financial discipline.