Quantum Helium (AIM:QHE) said it will progress to a planned fracture stimulation at the Sagebrush-1 well in Colorado after completing an initial acid injection and receiving encouraging preliminary gas analysis.
The extended production test at the Leadville Formation is designed to evaluate the commercial helium potential and Quantum, a helium, hydrogen and hydrocarbon exploration, development and production company, carried out the acid treatment on the upper Leadville dolomite at approximately 7,250 feet which accepted fluids at higher injection rates and pressures than earlier operations, indicating improved communication with the reservoir.
"The data collected to date supports progression to a larger fracture stimulation designed to improve communication with the broader Leadville reservoir and provide a more meaningful assessment of its production potential," Chief Executive Officer Howard McLaughlin said.
Preliminary gas analysis shows the raw gas has close similarities to the 1994 sample that recorded 2.76% helium, pressure build‑up monitoring has refined reservoir understanding and design inputs for the next phase, and earlier downhole testing equipment issues that affected the lower Leadville horizon have largely been addressed.
The planned fracture stimulation is aimed at establishing communication with undamaged reservoir beyond the wellbore to provide a more representative assessment of production potential and further operational updates will be provided as testing continues.
