Voyager Life PLC - Helium production commences at two further wells

19 August 2024

Voyager Life plc

("Voyager" or the "Company") 

Helium production commences at two further wells

Voyager is pleased to announce that the Smith and Nilson wells owned by M3 Helium Corp. ("M3 Helium") are now in production and tied into the gathering system owned by Scout Energy Partners ("Scout").  Sales of helium and methane will generate revenue for M3 Helium, and the Company currently anticipates receiving these revenues on a monthly basis.

M3 Helium owns a 100 per cent. working interest in the Smith and Nilson wells, both of which have been previously tested at high pressures capable of producing economic flow rates.  The wells recorded respective pressures of 174psi (pounds per square inch) and 180psi respectively (in tests carried out by Precision Wireline and Testing).  The tie in to Scout's infrastructure was concluded recently with production beginning almost immediately thereafter.  Scout's gathering network is connected to the Jayhawk gas processing plant which produces methane, helium, nitrogen and natural gas liquids.

The Company expects that production levels will take a few weeks to stabilise, and at this point, helium content is anticipated to be in the region of 0.635 per cent., based on a non JORC compliant competent person's report previously prepared for M3 Helium by WSP.  Management of M3 Helium are accordingly optimistic about the potential revenue capability from the wells.

As previously announced, Smith and Nilson are to the east of the core part of the Hugoton gas field in what is known as the transition zone.  It is M3 Helium's belief that this lesser produced area could provide considerable upside to the company by accessing formations previously overlooked by other operators. 

M3 Helium's next project, which is already underway, is to bring its Rost well at Fort Dodge into production.  As announced on 15 July 2024, this has been tested by Shamrock Gas Analysis, Inc. as containing 5.1 per cent. helium. 

Nick Tulloch, Chief Executive Officer of Voyager, said: "Bringing the Smith and Nilson wells into production is a significant step forward for M3 Helium.  The Hugoton gas field is one of the best known sources of helium in the world and, with substantial opportunity to drill further wells in this highly prospective region, M3 Helium now has proof of concept as it looks to further expand its assets.

"The speed at which the two wells were brought into production is another reminder of M3 Helium's competitive advantage.  With access to Scout's gathering system and its Jayhawk gas processing plant, M3 Helium has the ability to quickly monetise any new wells that it develops.

"From Voyager's standpoint, our ultimate focus has always been to build our business to become cash flow positive. The rate of progress and development milestones already achieved by M3 Helium - in just a few weeks since we announced the proposed acquisition at the end of June 2024 - gives our management team great confidence that the business we are seeking to acquire can realistically deliver this objective."

As announced on 27 June 2024, the Company has an option to acquire M3 Helium, a producer of helium based in Kansas and with an interest in six wells.  There is no certainty that the Company's option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete its re-admission to trading on the AQSE Growth Market.

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

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Overview of M3 Helium and the Hugoton North Play

Voyager announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Voyager to M3 Helium's shareholders.  The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.

M3 Helium has interests in six wells in South-Western Kansas of which three are in production.  Five of the company's wells are within the Hugoton gas field, one of the largest natural gas fields in North America.  Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.

The sixth well is in Fort Dodge and was tested in July 2024 as containing 5.1% helium composition.  Although not within direct access to the gathering network, M3 Helium owns a mobile Pressure Swing Adsorption production plant which could be used to purify the helium on site.

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.