Quantum Helium (AIM:QHE) has advanced the Sagebrush-1 extended production test into its critical phase, preparing to perforate the Lower Leadville Formation — the project’s principal helium reservoir — with operations booked to start next week.
Over the past week the team completed cementing across the producing Ismay zone, pressure testing casing and drill-out of cement and bridge plug to ensure well integrity ahead of flowing the target interval. The Leadville programme is explicitly designed to measure flow characteristics and to verify historical helium concentrations of 2.76%.
The work follows a string of milestones that enabled field operations: acquisition and consolidation of the Sagebrush project, approval of lease assignments and operatorship by the BIA, agreements with the Ute Mountain Ute Tribe, funding an irrevocable letter of credit for bonding, and completion of 3D seismic across the structure.
"The upcoming perforation of the Lower Leadville Formation is a major milestone for the Company and marks the transition into the key testing phase," said Quantum Chief Executive, Howard McLaughlin.
Quantum says the test is a “critical step towards converting prospective helium resources into reserves and commercial development.”
The company holds over 1 Bcf of 2U prospective recoverable helium resources across Sagebrush and Coyote Wash; perforation of the Lower Leadville is the next operational milestone.
