Sagebrush operatorship finalised. Test to commence

Quantum Helium Limited

05 March 2026

 

5 March 2026

Quantum Helium Limited

("Quantum" or the "Company")

BIA Approves Sagebrush Assignment

Extended Production Test at Sagebrush-1 to commence as soon as operatorship is finalised

Quantum Helium Limited (AIM: QHE) is pleased to announce that the U.S. Bureau of Indian Affairs ("BIA") has formally approved the assignment of the Sagebrush lease to Quantum, where the Company holds a 90% working interest.

This approval represents a major regulatory milestone for the Company and clears the way for key next steps being the appointment of Quantum as operator and the subsequent planned extended production test of the Sagebrush-1 well, which Quantum intends to commence as soon as possible.

All long-lead items required for the production test have already been secured, allowing the Company to move rapidly into operations.

The approval follows shortly after the recent BIA approval of the Coyote Wash Indian Mineral Development Agreement, further strengthening Quantum's regulatory and operational position across its Colorado helium portfolio.

Highlights

·      BIA approval received for the assignment of the Seeley lease to Quantum Helium for the Sagebrush Project

·      Production test scheduled to begin shortly following confirmation of Quantum's operatorship with all long-lead equipment already secured

·      Historic drill stem test confirmed helium concentration of 2.76% from the Leadville Formation at Sagebrush-1 well

·      Independent Sproule ERCE evaluation confirms 2U gross helium prospective resources of 134 MMscf at Sagebrush

·      Combined Colorado portfolio now hosts more than 1 BCF of independently verified gross helium resources across Sagebrush and Coyote Wash

·      Approval follows recent BIA approval of the Coyote Wash IMDA, further strengthening Quantum's operational position in the Four Corners helium fairway

·      Extended production test represents the next step towards potential commercial development of the Sagebrush helium discovery

Sagebrush Extended Production Test

The extended production test will initially focus on the Leadville Formation, a carbonate reservoir which has emerged as a significant helium target across the Four Corners region.

The Sagebrush-1 well was originally drilled to a depth of approximately 7,467 feet, targeting both the Ismay Formation oil reservoir and the deeper Leadville Formation carbonates. During historical drill stem testing of the Leadville interval, the well flowed non-combustible gas which laboratory analysis confirmed contained 2.76% helium, alongside methane and heavier hydrocarbons.

Wireline logs identified approximately 94 feet of net gas pay, and the test concluded with the well continuing to build pressure, suggesting the potential for stronger sustained flow rates using modern completion and stimulation techniques.

The well was subsequently cased and remains available for re-entry, providing the Company with a significant time and cost advantage as it advances testing.

The planned extended production test will include acid stimulation of the Leadville reservoir and sustained flow testing designed to measure productivity, reservoir characteristics and gas composition under modern operational conditions.

Data obtained from the test will be used to refine reservoir modelling and support the potential transition of resources toward reserves and future development planning.

Independent Resource Validation

An independent resource evaluation by Sproule ERCE confirmed Sagebrush as a technically credible helium project with 2U gross prospective helium resources of 134 MMscf, with upside potential of 269 MMscf in the 3U case.

This independently verified helium resource forms part of Quantum's wider Colorado portfolio which now totals more than 1 BCF of 2U gross helium resources across Sagebrush and Coyote Wash.

The recently completed high-resolution 3D seismic survey has also confirmed the presence and geometry of the large helium-bearing Leadville structure at Sagebrush, materially de-risking the planned production test.

Strategic Importance

The approval of the Sagebrush assignment allows Quantum to move to the final step of becoming the operator of record. After completing the formality of obtaining operatorship we can commence the Sagebrush-1 extended production test.

The Company believes Sagebrush represents a flagship development opportunity within the Four Corners helium fairway, supported by:

·      a drilled and cased discovery well

·      independently validated helium resources

·      newly acquired 3D seismic confirming the structural trap

·      established infrastructure in the region

The Company's immediate operational focus is now on executing the extended production test and evaluating the results as part of its broader development strategy across both Sagebrush and Coyote Wash.

Howard McLaughlin, Chief Executive Officer of Quantum Helium, commented: "Receiving BIA approval for the assignment of the lease we bought from Seeley Oil Company is a major milestone for the Company and allows us to move immediately following operatorship into the next operational phase.

Sagebrush-1 has already demonstrated the presence of helium in the Leadville Formation, with historic testing confirming a concentration of 2.76%. The well encountered approximately 94 feet of gas pay and concluded testing while still building pressure, which is highly encouraging from a reservoir perspective.

The upcoming extended production test will allow us to apply modern completion techniques, including acid stimulation, to properly evaluate the productivity of the Leadville reservoir. The data generated will be critical in confirming flow rates, reservoir performance and the broader commercial potential of the Sagebrush helium accumulation.

With 3D seismic confirming the size and geometry of the Leadville structure, we believe the project is now well positioned to demonstrate its value through this production test."

Carl Dumbrell, Executive Chairman of Quantum Helium, added: "This approval represents an extremely important step for Quantum and reflects the constructive engagement we have had with both the Bureau of Indian Affairs and the Ute Mountain Ute Tribe.

Last week the executive team travelled to Colorado where we had the opportunity to meet with Tribal representatives and discuss the Sagebrush project in person. We are very grateful for the time they gave us and sincerely appreciate the ongoing support and cooperation shown towards Quantum.

Building respectful and long-term relationships with our partners and local stakeholders is fundamental to how we operate.

With the assignment now formally approved and all long-lead items already secured, we look forward to becoming operator and commencing the extended production test at Sagebrush-1 and working closely with the Tribe as the project progresses."

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon publication via Regulatory Information Service ('RIS'), this information is now in the public domain

Enquiries:

Quantum Helium Limited Carl Dumbrell Chairman	NOMAD and Joint Broker SP Angel Corporate Finance LLP Stuart Gledhill / Richard Hail / Adam Cowl [phone]
Brand Communications Alan Green Tel: [phone]	Joint Broker CMC Markets UK Plc Douglas Crippen [phone]

Updates on the Company's activities are regularly posted on its website: www.quantum-helium.com

Notes to editors

Quantum (AIM: QHE) is a helium, hydrogen and hydrocarbon exploration, development, and production company with projects in the US and Australia. Quantum's strategic objectives remain consistent: to identify opportunities which will provide operating cash flow and have development upside, in conjunction with progressing exploration. The Company has several projects in the US, in addition to royalty interests in Australia.

 

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