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
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
|
Tel: +44 (0) 1483 413500
|
Stanford Capital Partners Ltd (Broker)
Patrick Claridge/Bob Pountney
|
Tel: +44 (0) 203 3650 3650/51
|
Brand Communications (Public & Investor
Relations)
Alan Green
|
Tel: +44 (0) 7976 431608
|
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.