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.