Quantum Helium Limited (AIM: QHE; OTC: QHELF) has announced that mobilisation and site preparations are underway at its Sagebrush-1 well in Colorado, USA, ahead of a planned larger-scale fracture stimulation programme targeting the helium-bearing Leadville Formation. The company holds a 90% working interest in the well and says the programme represents a significant operational milestone following months of detailed technical evaluation and engineering design. The announcement comes days after the US Department of Energy formally designated helium as a critical material on 23 October 2026, adding strategic weight to the timing of Quantum's operations.

Key Points

  • Quantum Helium Limited (AIM: QHE; OTC: QHELF) is an AIM-quoted helium and hydrocarbon exploration, development and production company operating in the US
  • Mobilisation has commenced at Sagebrush-1 in Colorado, with a workover rig on location and specialist stimulation equipment being assembled
  • Sagebrush-1 has previously recorded helium concentrations of approximately 2.5% during recent testing and 2.76% during historical drill stem testing; Quantum's Colorado portfolio holds 1.104 Bcf of independently assessed 2U gross helium resources
  • Investors will be watching flowback results, gas flow rates and reservoir pressure data following completion of the stimulation programme

Workover Rig On Location at Sagebrush-1 as Gelled Foam Stimulation Prepares to Begin

The announcement states that a workover rig is now on location at Sagebrush-1 and that new 3.5-inch tubing has been installed in the well. Preparations are advancing for the deployment of additional surface equipment, storage tanks and specialist stimulation services. The planned operation will utilise a gelled foam fracture stimulation treatment incorporating nitrogen to create the foam and proppant to maintain conductive pathways within the Leadville Formation. The use of nitrogen is designed to assist the flowback process, helping to recover treatment fluids and support subsequent evaluation of gas flow from the reservoir, the announcement states.

Leadville Formation Gas Presence Confirmed; Stimulation Targets Improved Reservoir Connectivity

Quantum notes that Sagebrush-1 historically flowed gas to surface from the Leadville Formation during drill stem testing, confirming the presence of a helium-bearing gas accumulation. The current programme is therefore focused on improving flow characteristics of an established gas-bearing formation rather than identifying a new accumulation. The company says the stimulation is designed to overcome flow restrictions identified during previous testing by creating and maintaining conductive fractures that improve connectivity to the helium-bearing reservoir. The programme follows an extensive technical review conducted with specialist fracture stimulation engineers, including analysis of an earlier acid stimulation programme and the geological characteristics of the Leadville Formation.

US$552 Million Illustrative Gross Sales Value Cited Against 1.104 Bcf Colorado Resource Base

Quantum's Colorado portfolio, encompassing Sagebrush and Coyote Wash, holds 1.104 billion cubic feet of independently assessed 2U gross helium resources as evaluated by Sproule ERCE. Based on an illustrative helium selling price assumption of US$500 per thousand cubic feet, the company states this resource represents a potential gross sales value of approximately US$552 million. The announcement explicitly notes this figure is illustrative and does not represent a project valuation or an estimate of future revenue, which would depend on successful development, commercial recovery and prevailing market conditions.

US Department of Energy's Critical Material Designation Reinforces Timing of Quantum's Colorado Programme

The mobilisation coincides with the US Department of Energy's formal designation of helium as a critical material on 23 October 2026, recognising its essential role in semiconductor manufacturing, quantum computing, advanced technologies and national security. The designation reinforces the strategic importance of developing secure domestic helium supplies at a time of heightened global supply concerns, the announcement states. Quantum describes its independently assessed resource base, established infrastructure at Sagebrush and the increasing strategic importance of US domestic helium supply as a compelling foundation for future development. The timing and outcome of operations remain subject to final operational and regulatory requirements, weather conditions and well performance.