Voyager Life PLC - Elevated helium levels tested at Fort Dodge

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.

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