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(Sharecast News) - AIM-listed Quantum Helium has revealed that a seismic review at its Sagebrush Helium Project in Colorado has materially de-risked the planned extended production test at the first well.
The Sagebrush-1 well, first drilled in 1994, was confirmed as a dual oil and helium well with a helium concentration of 2.76%, with well data showing the presence of potential helium-bearing accumulation within the Leadville Formation.
Detailed prospect mapping will soon commence once final depth conversion is completed in the coming weeks.
"One of the primary objectives of the 3D seismic programme was to confirm that interpretation, and the new data has done exactly that - clearly validating the size, geometry and continuity of the Leadville structure we had previously mapped. The quality of the data is excellent and materially strengthens our confidence as we move towards testing the Leadville in Sagebrush-1," said Quantum's chief executive Howard McLaughlin.
Analysis also identified "encouraging" data that conforms closely with the original Sagebrush Ismay oil discovery, with the company now evaluating potential new oil drilling targets.
Meanwhile, further interpretation is ongoing at the company's southern Coyote Wash acreage. where it has already disclosed six drill-ready Leadville helium prospects, together with additional Ismay oil targets.
"Together, these preliminary results significantly de-risk the next phase of activity and reinforce the broader development and growth potential across both Sagebrush and Coyote Wash," McLaughlin said.
QHE shares were down 0.9% at 0.038p by 1429 GMT.
