Quantum Helium (QHE) has revealed further operational progress at its flagship Sagebrush Project in Colorado while approving plans to seek a secondary quotation on the OTC Markets in the United States. The company expects the application process to complete in about four weeks, subject to customary approvals.
The proposed OTC Markets quotation is designed to broaden access for North American investors without issuing new shares or increasing the company's reporting obligations. Existing AIM-listed shares will become eligible to trade in US dollars during US market hours, supporting Quantum's strategy as a US-focused helium and energy developer.
Operationally, Sagebrush-1 continues to produce oil, helium-bearing gas and water as reservoir optimisation progresses. The company expects to complete its first commercial sale of oil from the Leadville Formation this month, marking another milestone for the project. While the commercial oil discovery was made during helium testing, management believes it represents a significant additional value opportunity alongside the project's helium potential.
Recent production testing has continued to support confidence in the reservoir, confirming helium concentrations of 2.5%, reservoir pressures approaching virgin conditions and an extensive natural fracture network capable of supporting future field development. Quantum is continuing pressure build-up testing and well optimisation before establishing representative long-term production rates.
Looking ahead, the company plans to re-engage independent reserves auditor Sproule ERCE to update its certified resource assessment once production has stabilised. Planning is also underway for a multi-well drilling programme targeting both helium and oil across its Colorado acreage, while discussions with the US Bureau of Land Management have supported the permitting pathway for future development.
Quantum's existing oil portfolio continues to generate revenue, with seven of its eight producing wells currently online.
Quantum Helium's Chief Executive Officer Howard McLaughlin said: "Over recent months we have continued to build our understanding of the Sagebrush reservoir which has reinforced our confidence in the commercial potential of the project.
"Our immediate priorities are to continue reservoir optimisation and establish representative sustained production rates, complete our first sale of Leadville oil and, once production has stabilised, update our independently certified resource assessment with Sproule. At the same time, we are actively planning the next phase of drilling across our Colorado acreage as we seek to unlock the broader value of our helium and oil portfolio."
"The decision to pursue a secondary quotation on the OTC Markets is another important step in the company's evolution. With all of our assets located in the United States, broadening our access to North American investors is a natural progression as we continue executing our strategy to build a leading US-focused helium and energy company."
View from Vox
Quantum Helium continues to make steady operational progress at Sagebrush, with the unexpected commercial oil discovery providing an additional revenue stream alongside its core helium strategy. A successful OTC Markets quotation could also increase the company's profile among US investors at a time when it is preparing for the next phase of drilling and commercial development.