Sagebrush Update. Colorado Drilling Opportunities

Quantum Helium Limited

24 August 2026

 

24 August 2026

Quantum Helium Limited

("Quantum" or the "Company")

Sagebrush Engineering Update and Colorado Drilling Opportunities

Quantum Helium Limited (AIM: QHE) is pleased to provide an update on engineering work at its Sagebrush Project (90% Working Interest) and on additional drilling opportunities across its Colorado portfolio.

Following the initial Sagebrush-1 Extended Production Test ("EPT") completed earlier this year, the Company is finalising an engineering assessment to define the next phase of testing, stimulation and field development.

The EPT confirmed helium-bearing gas at approximately 2.5%, strong reservoir connectivity and rapid pressure recovery. It also identified commercial oil in the Leadville Formation.

Quantum expects the next programme to use a more extensive stimulation treatment to increase contact with the natural fracture network and improved sustained flow rates from which to base development planning. Final recommendations are expected shortly.

In parallel, permitting and drill planning are advancing across five additional opportunities across the Company's Sagebrush and Coyote Wash (100% Working Interest) projects.

Highlights

·      Engineering assessment nearing completion; the next Sagebrush-1 programme is expected to include further testing and a larger stimulation treatment

·      EPT confirmed approximately 2.5% helium, strong reservoir connectivity, rapid pressure recovery and commercial Leadville oil

·      Larger stimulation treatment intended to increase fracture-network contact and improve flow rates

·      Permit applications being prepared for the near-term Little Ute SE and Yellow Jacket SE oil targets in the Sagebrush project area

·      Three larger follow-on prospects have also been identified: Mariano Wash SE and Sagebrush East within Quantum's existing project areas, and Lula within adjacent acreage for which an application is being prepared for submission to the Tribe.

Sagebrush Reservoir Optimisation

The initial EPT was designed to characterise the Leadville reservoir and guide future development. It confirmed helium-bearing gas at approximately 2.5%, consistent with historic results from Sagebrush-1.

After the initial acid stimulation, reservoir pressure recovered rapidly to more than 70% of estimated virgin pressure within four days, with analysis indicating that recovery could exceed 90% with additional build-up time. The response demonstrated strong connectivity with the reservoir's natural fracture network and provides an encouraging technical basis for further optimisation. While consistent flow rates were not established during the initial programme, due in part to liquids build-up, the results are informing the design of the next stimulation and testing programme aimed at improving reservoir contact and sustained flow performance.

The test also identified commercial oil within the Leadville Formation, adding a potential development opportunity alongside helium.

Engineering and Reservoir Optimisation

The engineering and reservoir optimisation assessment combines EPT results with seismic, geological, reservoir and historic well data. It is evaluating a larger stimulation and testing programme designed to increase fracture-network contact and improve gas and oil productivity.

The assessment will define:

·      the stimulation and test design;

·      the likely effect of increased reservoir contact on gas and oil productivity;

·      reservoir drainage, well spacing and any need for additional development wells;

·      production and surface facility requirements; and

·      the pathway to commercial helium production and integrated oil development.

Final recommendations are expected shortly and will determine the scope of the next Sagebrush-1 programme which will be funded from the Company's existing cash resources. Shareholders will be updated when the programme is finalised.

Building the Next Generation of Drilling Opportunities

Technical evaluation has identified five new drilling opportunities across and adjacent to Quantum's Colorado acreage: two near-term oil targets and three larger helium and oil prospects.

Permit applications are being prepared for the two most advanced Ismay targets: Little Ute SE and Yellow Jacket SE.

Little Ute SE (within existing Sagebrush acreage)

The Company's integrated technical evaluation, incorporating seismic interpretation and other geological and subsurface workstreams, has identified an interpreted extension of the Upper and Lower Ismay reservoirs.

Yellow Jacket SE (within existing Sagebrush acreage)

Interpretation of the Company's seismic and wider subsurface dataset supports an extension of the productive Upper Ismay trend.

Figure 1. Sagebrush acreage shown in green, Coyote Wash acreage shown in  yellow, including the two lowest-risk candidates.

Three larger follow-on opportunities have also been identified:

Mariano Wash SE (within existing Coyote Wash acreage)

Integrated seismic and geological interpretation has identified a Lower Ismay oil target at Mariano Wash, with a secondary Upper Ismay objective interpreted as an extension of existing production.

Lula (adjacent to Sagebrush acreage)

A dip-closed Mississippian helium and oil prospect extending towards basement. Technical interpretation indicates a potential multi-Bcf gas accumulation with helium concentrations of approximately 1-2% or more; Sagebrush-1 results also indicate possible oil charge.

Sagebrush East (within existing Sagebrush acreage)

A higher-impact Mississippian helium and oil prospect associated with the wider Sagebrush-1 structure and under continued technical evaluation.

Figure 2. Near-term field extensions and larger helium prospects.

An updated investor presentation covering the Colorado portfolio is being finalised and will be published on the Company's website.

Additional Acreage

Quantum is in the process of preparing to submit applications for additional acreage around its existing projects. If successful, the applications would increase exposure to geological trends identified through recent technical work. Further details will be provided as the applications progress.

Colorado Growth Strategy

Quantum aims to build a multi-field helium and oil business in Colorado. It holds independently assessed gross 2U helium resources of 1.104 Bcf at Sagebrush and Coyote Wash, alongside existing oil production and newly identified Leadville oil potential.

The Sagebrush programme, Coyote Wash, five additional drilling opportunities and possible acreage expansion provide a multi-year pipeline of exploration, appraisal and development activity.

Quantum's immediate priorities are to complete the Sagebrush engineering and optimisation assessment and recommended next phase, advance permitting and infill drill planning, and assess opportunities to expand its acreage and production base.

OTC Markets Update

Quantum has now provided all requested documentation in connection with its proposed OTC Markets listing in the United States, with the application confirmed to be in good standing and the review process nearing completion. The Company expects to receive further confirmation shortly regarding the anticipated listing date and will update shareholders as the process progresses.

Howard McLaughlin, Chief Executive Officer of Quantum Helium, commented: "Our work at Sagebrush continues to strengthen our confidence in the project. The initial programme confirmed helium at approximately 2.5%, strong reservoir connectivity and rapid pressure recovery, while also identifying commercial oil within the Leadville Formation.

The engineering and optimisation assessment is now shaping a more extensive stimulation and testing programme designed to increase reservoir contact, improve Sagebrush-1 flow performance and provide the technical foundation for the next stage of commercial development

At the same time, we are advancing permitting for the lower-risk Little Ute SE and Yellow Jacket SE oil targets, while Mariano Wash SE, Lula and Sagebrush East provide further significant helium and oil growth opportunities. We are not only progressing Sagebrush towards its next phase, but also building a broader Colorado drilling pipeline with the potential to support a multi-field helium and oil business."

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] Joint Broker OAK Securities Jerry Keen / Robert Bell Tel: [phone]

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

Notes to editors

Quantum (AIM: QHE) explores, develops and produces helium, hydrogen and hydrocarbons, with projects in the United States and Australia. The Company targets opportunities that can generate operating cash flow and offer development upside while continuing exploration. Its portfolio includes several US projects and Australian royalty interests.

 

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