Quantum Helium Limited's (AIM:QHE) Quantum Helium shares rose 15.6% to 2.6p after confirming helium-bearing gas and commercial oil at the Sagebrush-1 extended production test. Trading surged to 2.14bn shares, intraday range 2.4p to 2.8p.
The AIM-listed helium, hydrogen and hydrocarbon exploration and production company holds a 90% working interest in Sagebrush-1, where the latest laboratory analysis returned helium concentrations of approximately 2.5% while testing has recovered more than 80 barrels of oil with indicated potential rates up to 40 barrels per day gross.
An acid fracture stimulation established connectivity with the natural fracture system, produced pressure build-up to approximately 90% of virgin reservoir pressure and demonstrated high injectivity, the company said.
Gas composition matches the original 1993 drill stem test, and the presence of stimulation fluids and load water is currently affecting the ability to assess sustained gas flow rates while cleanup operations continue.
Quantum will provide the EPT production, pressure and fluid data to Sproule ERCE so the original resource evaluation can be reviewed with the newly identified oil component in mind.
Next-phase operations include removal of the isolation packer and bridge plug, commingling upper Leadville intervals, adding approximately 25 feet of deep perforations to increase total perforated exposure to approximately 49 feet at 7,215-7,240 feet, aggressive fluid recovery and installation of a rod pump and pumpjack.
"The preliminary results obtained to date have exceeded our expectations in several key areas," Howard McLaughlin, Chief Executive Officer, said.
The company expects to inform flow rate potential from the Leadville following ongoing cleanup operations to remove injected fluid.
