Quantum Helium (QHE ) has commenced its extended production test at the Sagebrush-1 well in Colorado.
Chief executive Howard McLaughlin is on site overseeing operations.
The test will evaluate flow rates and helium concentrations and is a key step towards converting prospective resources into reserves.
The results are also expected to inform development planning.
Sagebrush-1 is a proven helium discovery well, with historic testing confirming helium concentrations of approximately 2.76% from the Leadville Formation.
The extended production test is designed to establish flow characteristics and confirm the commercial potential of the reservoir.
The well benefits from existing infrastructure and does not require new drilling, allowing for a low-cost and efficient test programme.
Quantum holds over 1.1 billion cubic feet of independently verified prospective helium resources across its Sagebrush and Coyote Wash projects, positioning it as one of the largest verified helium resource holders among London-listed peers.
Testing is expected to run over the coming weeks, with results to be announced once analysis has been completed.
"Commencing the extended production test at Sagebrush-1 is a major milestone for Quantum and an important step forward for the company,” said Howard McLaughlin, chief executive of Quantum Helium.
“This well has already demonstrated the presence of helium, and this programme is focused on confirming flow rates and commercial potential. The results will be critical in moving our prospective resources towards reserves and defining the pathway to development. We will keep shareholders informed as testing progresses and look forward to reporting the results in due course.”
View from Vox
The commencement of testing at Sagebrush-1 represents a major value inflection point, moving the company from discovery towards potential production. With global helium markets tightening and spot prices rising significantly, the test looks well timed within a highly supportive macro environment.