Quantum Helium (QHE) has increased its working interest in the Sagebrush helium project from 82.5% to 90% following the acquisition of a minority interest owned by Jackal Oil Company.
The interest was acquired for a cash consideration of US$85,000, as Jackal elected to streamline its portfolio through a clean exit.
There are no profits or losses attributable to the working interest being acquired.
The remaining 10% working interest is owned by Quantum's chief executive, Howard McLaughlin, and is not carried.
Meanwhile, work at Sagebrush is ongoing, as 3D seismic acquisition is now in its final stages, with initial processed results expected in January.
The 3D survey is designed to refine the geometry and extent of the Leadville helium structure intersected in Sagebrush-1, improve the imaging of additional algal mound targets across the field, support the placement of future development and appraisal wells, and integrate seamlessly with existing 3D seismic coverage at the neighbouring Coyote Wash project.
The results from this work will directly inform the Company's 2026 drilling and development planning.
Separately, the independent resource report for the Coyote Wash project being prepared by Sproule is expected within a week, following completion of a technical assessment.
Sproule’s evaluation is expected to provide an independent assessment of the resource potential across Coyote Wash. Internally, Quantum has reckoned that Coyote Wash contains, on a best estimate basis, 1,072 million cubic feet of 2U gross prospective helium resource. The Sproule report will play a central role in shaping Quantum's forward work programme.
Quantum has also been able to engage once more with the Bureau of Indian Affairs, following cessation of the US government shutdown, with flow testing of Sagebrush-1 expected to commence early in the New Year upon receipt of final approvals.
"Consolidating our ownership at Sagebrush at this stage of the project is a very positive and strategic outcome for Quantum,” said Quantum Helium chairman, Carl Dumbrell.
“We were able to agree terms that benefit both parties while strengthening our position in what we regard as one of the region's most compelling helium opportunities. Operationally, momentum is building. The 3D seismic programme is nearly complete, we expect to receive the Sproule report soon, and our meetings with the BIA this week were constructive and encouraging. Once approvals are finalised, we plan to initiate flow testing of Sagebrush-1 early in the New Year. Both Andrew Scott and I have recently added to our shareholdings, and we are pleased to be invested alongside our fellow shareholders.”
View from Vox
This looks to be a highly favourable outcome for Quantum, as it consolidates ownership in a project that already holds a drilled and cased helium discovery well, and which is now being advanced towards production testing. Good to see directors increasing their stakes too. Next year should be a crucial year.