Quantum Helium Limited (QHE ) has received confirmation from the U.S. Bureau of Indian Affairs that the Indian Mineral Development Agreement relating to the Coyote Wash helium project has been formally approved.
This approval represents a significant regulatory milestone for the company and follows the previously announced independent resource confirmation by Sproule ERCE at Coyote Wash.
Quantum is still awaiting formal approval of the Sagebrush assignment of operatorship with the BIA having confirmed that all documentation required for the assignment of the relevant leases and designation of operatorship has been received and is in good standing.
The company understands that formal approval of the Sagebrush assignment and operatorship is progressing towards conclusion and remains confident that this will be completed in the short term.
With IMDA approval now secured at Coyote Wash and constructive engagement ongoing across regulatory and Tribal stakeholders, Quantum believes it is entering an important operational phase across its Colorado portfolio.
The IMDA provides the contractual and regulatory framework under which Quantum may develop helium and hydrocarbon resources on Tribal lands within the Coyote Wash project area, where the company holds a 100% working interest and is operator.
With IMDA approval now secured, Quantum is now positioned to advance well planning and final permitting activities, progress drilling preparations across the five mapped Leadville helium prospects, refine development planning for both helium and Ismay oil targets, and move towards drilling and development operations at Coyote Wash.
In December 2025, Sproule ERCE independently confirmed 2U gross prospective helium resources of 0.97 billion cubic feet (bcf) at Coyote Wash. Combined with the 0.134 bcf 2U gross helium prospective resource at Sagebrush, Quantum holds 1.104 bcf gross (828 million net) 2U helium across its Colorado portfolio.
Sproule ERCE also identified prospective recoverable oil resources at Coyote Wash of up to 750,000 barrels (3U case) within the Ismay Formation
Coyote Wash contains five drill-ready Leadville helium prospects mapped on the recently reprocessed 3D seismic, together with additional Ismay oil targets.
The Coyote Wash IMDA approval follows an executive visit to Colorado by chief executive Howard McLaughlin, executive chairman Carl Dumbrell and executive director Andrew Scott.
Of particular importance on this trip was the executive team's meeting with leaders of the Ute Mountain Ute Tribe.
Meanwhile, Quantum's immediate operational focus remains on securing final approvals required to commence the extended production test at Sagebrush-1.
The Sagebrush project hosts a Sproule ERCE-verified 2U gross helium resource of 134 million cubic feet, with the Sagebrush-1 well historically flowing gas containing 2.76% helium during drill stem testing.
The recently completed high-resolution 3D seismic survey confirmed the presence and geometry of the large Leadville helium structure at Sagebrush, materially de-risking the planned extended test.
"The approval of the Coyote Wash IMDA is a major step forward for Quantum,” said Howard McLaughlin, chief executive of Quantum Helium.
“It provides the regulatory framework required to advance what is already an independently verified 0.97 bcf 2U gross helium prospective resource with additional oil upside. Coyote Wash adds real scale to our Colorado portfolio. At the same time, our immediate focus remains on Sagebrush, where the extended production test at Sagebrush-1 is fully prepared pending final regulatory approvals. With documentation confirmed as in good standing and the assignment process progressing towards conclusion, we believe the remaining approvals are now in their final stages and look forward to updating the market upon receipt. With 3D seismic confirming the integrity of the Leadville structure, we are well positioned to move into testing and the next phase of value creation."
View from Vox
It’s a big milestone for Quantum to get the BIA approval, and unlocks the company’s ability to move forward on several fronts. Watch for lots of newsflow in the coming months, especially in regard to well planning and final permitting.