Skip to content

Voyager Life PLC - Elevated helium levels tested at Fort Dodge


Announcement provided by

Mendell Helium plc · MDH

15/07/2024 07:00

Voyager Life PLC - Elevated helium levels tested at Fort Dodge
RNS Number : 3202W
Voyager Life PLC
15 July 2024
 

 

15 July 2024

 

Voyager Life plc

 

("Voyager" or the "Company") 

 

Elevated helium levels tested at Fort Dodge

 

Voyager is pleased to announce that M3 Helium Corp., ("M3 Helium"), a producer of helium based in Kansas, USA, which the Company has an option to acquire through the issue of 57,611,552 new ordinary shares in Voyager to M3 Helium's shareholders ("Option"), has received test results showing helium concentrations between a range of 4.82% and  5.1% at its Rost well at Fort Dodge.

 

Highlights

 

·    Two samples tested by Shamrock Gas Analysis, Inc. evidenced 5.1% helium composition last week  

·  Two previous samples analysed by Hosco Well Testing, in Liberal, Kansas, showed helium compositions of 4.83% and 4.82% respectively

·    To set these results in context, helium content of 0.3% is generally considered economic

·    Thurmond-McGlothlin, LLC, an independent professional firm, also tested the pressure at 302.7 psi last week  

·    Samples of gas were previously taken and measured at 47,100 cubic feet per day (47.1 Mcfd) 

 

Overview of operations

 

Operations were initially conducted on M3 helium's Fort Dodge well to verify and confirm a previous industry report of helium bearing gas.  This gas was believed to be, of an unusual composition, being dominated by nitrogen, and also with the benefit of very little associated methane, and with helium originally at an expected 4.6% concentration. This type of gas composition is known in some deeper sediments in Kansas and from Cambrian-aged sediments in Canada and Montana USA

 

The Rost well was perforated at the top few feet of the Morrow formation with a dozen small holes at 5,008 ft. to 5,010 ft. The formation is over 40 ft thick. Native brine was encountered in the well at approximately 1,560 ft. from surface. The well brine was swabbed using a service rig. At this time no measurable gas was detected.

 

However, subsequently, the well showed pressure on both the casing and the tubing of 240 psi and 400 psi respectively. Gas was flowing up the tubing which was then lowered so that gas would only flow up the casing side and clean gas samples could be retrieved. Measurable gas was flowing on the casing side, even when the brine level was over 2,150 ft over the formation, representing a resistance to flow on the formation exceeding 925 pounds per square inch (psi).

 

Swabbing continued during the testing phase to reduce the brine level and M3 Helium began to sample the gas for composition measurement. The brine level was then reduced to 1,058 ft over the perforations (still a resistance to flow on the formation of over 450 psi), and samples of gas were taken and measured at 47,100 cubic feet per day (47.1 Mcfd). 

 

Test results and next steps

 

Initially two samples analysed by Hosco Well Testing, Liberal, Kansas, revealed gas composition of 4.83% and 4.82% helium, respectively, along with nitrogen at approximately 85%, and methane at only 6%. Last week a further two samples were tested by Shamrock Gas Analysis, Inc. at 5.1% helium.  Thurmond-McGlothlin, LLC, an independent professional firm, also tested a well pressure at 302.7 psi at the same time as taking the samples.

 

To set these results in context, helium content of 0.3% is generally considered economic so, based on the well pressure and helium concentration, M3 Helium's Fort Dodge prospect is a potentially very significant opportunity.

 

M3 Helium expects to complete this well during the third quarter of 2024 by installing downhole equipment and connecting it to the existing injection well, which is also owned by M3 Helium. The company expects to commence production, purification and sales of helium from this area in the fourth quarter of 2024.

 

M3 Helium owns a specialised mobile pressure swing adsorption (PSA) plant and other associated equipment capable of purifying helium to a concentration of 45-55%. It will seek to enter into agreements with end purchasers to compress the concentrated product into tubing and ship it via special tube trailers provided by the buyers.

 

As announced on 27 June 2024, there is no certainty that the Option will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.

 

Nick Tulloch, Chief Executive Officer of Voyager, said: "Following on from the rapid progress reported and the commencement of drilling at Hugoton North Play at the start of July, we are both pleased and excited to be able to report the presence of highly elevated helium at over 5% at the operation in Fort Dodge. The helium, along with a low hydrocarbon bearing gas, was drawn from a clearly permeable reservoir, having bottom hole pressure of over 1,400 psi. Furthermore, increasing gas volumes were noted while lowering the native brine level in the well bore. Taking the measured 47.1 Mcfd of gas, potential helium daily production is indicated to be over 2,000 cubic feet per day of helium (2 Mcfd) and remarkably, this flow rate was achieved while over 1,000 ft. of brine was covering the perforations. We are eager to discover the well's full potential once the fluid level drops to the perforations, reducing the resistance to flow, as a result of pumping brine consistently over time.

 

"It is also important to note that M3 Helium has the infrastructure to purify and sell helium on-site, enabling it to expand operations and generate revenue from this well in a relatively short period.  I look forward to reporting on further progress as we build a deeper understanding of the full potential of the Fort Dodge asset, and also on progress from the drilling programme at the Hugoton North Play."

 

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

 

ENDS

 

Enquiries:

Voyager Life plc

 

Nick Tulloch, CEO

 

 

 

Tel: +44 (0) 1738 317 693

 

http://voyagerlife.uk

nick@voyagerlife.uk

 

Cairn Financial Advisers LLP (AQSE Corporate Adviser)

 

Ludovico Lazzaretti/Liam Murray

 

Tel: +44 (0) 20 7213 0880

SI Capital Limited (Broker)

 

Nick Emerson/Nick Briers

Tel:  +44 (0) 1483 413500

 

Stanford Capital Partners LLP (Broker)

 

Patrick Claridge/Bob Pountney

 

 

Tel:  +44 (0) 203 3650 3650/51

 

 

Brand Communications (Public & Investor Relations)

 

Alan Green

 

Tel: +44 (0) 7976 431608

 

FORWARD LOOKING STATEMENTS

This announcement includes "forward-looking statements" which include all statements other than statements of historical facts, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations, or any statements preceded by, followed by or that include the words "targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would", "could" or "similar" expressions or negatives thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based unless required to do so by applicable law.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
NEXRIMTTMTMBTRI]]>

View more ...

MDH announcementsAll announcements

Company

  • About
  • News
  • Investor Relations
  • Contact
  • Careers
ISO 27001 Certified

© Aquis Exchange 2024. All rights reserved.

Terms & ConditionsPrivacy PolicyModern Slavery & Human Trafficking Policy
System statusnormal