Pre-production underway at the flagship Rost well

Voyager Life PLC

09 September 2024

 

9 September 2024

Voyager Life plc

("Voyager" or the "Company") 

Pre-production underway at the flagship Rost well, Fort Dodge Prospect

Voyager is pleased to announce that preparations to bring the Rost 1-26 well owned by M3 Helium Corp. ("M3 Helium") into production are now well advanced.  Sales of helium from that well are expected to commence by end of September 2024.

The Rost 1-26 well, located in M3 Helium's Fort Dodge prospect, has previously been tested by Shamrock Gas Analysis, Inc. and was found to contain a gas composition of 5.1% helium in July 2024. Thurmond-McGlothlin, LLC, an independent professional firm, also tested a well pressure at 302.7 psi in July 2024, at the same time as taking the samples.  These tests follow on from a flow rate that was measured at 47,100 cubic feet per day (47.1 Mcfd), with this result being achieved even though brine levels were 1,058 feet over the perforations. 

M3 Helium will commence de-watering the well shortly in the expectation that it could further increase the flow rate.  Water tanks have been delivered to site in preparation for that exercise.

M3 Helium has recently installed a pump to the site and delivered its Pressure-Swing Adsorption (PSA) modular processing unit.  Power is expected to be connected to site during the course of this week whereupon commissioning of the PSA will begin, with an estimated time of 10 days to complete the programme.  Management expects that produced helium could be concentrated to around 20 - 50% onsite using the PSA, thereby maximising efficiencies by ensuring the lowest possible transport costs to a local processing plant.

The Fort Dodge area is outside of the proximity of gathering systems and so M3 Helium will install a compressor at the well to load the concentrated helium mixture onto tube trailers for delivery by road to the processing plant.  Management are currently in discussions with two potential off-take third-parties and a decision will be made shortly.

Nick Tulloch, Chief Executive Officer of Voyager, said: "The elevated helium concentrations coupled with the attendant high pressure has quite rightly pushed the Rost well into pole position as M3 Helium's flagship project.  M3 Helium management are optimistic that, when the well comes on production, it will be a significant contributor to its operations.

"M3 Helium's focus is on production and sales, and consequently preparations have centred around efficient delivery of produced helium to market.  The PSA and onsite compressor will enable M3 Helium to achieve this objective by cost-effectively transporting a concentrated gas mix to nearby processing facilities and, with the forecast production numbers, I am pleased to report there are several options for off-take."

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: [phone] http://voyagerlife.uk [e-mail]
Cairn Financial Advisers LLP (AQSE Corporate Adviser) Ludovico Lazzaretti/Liam Murray	Tel: [phone]
SI Capital Limited (Broker) Nick Emerson	Tel:  [phone]
Stanford Capital Partners Ltd (Broker) Patrick Claridge/Bob Pountney	Tel:  [phone]/51
Brand Communications (Public & Investor Relations) Alan Green	Tel: [phone]

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.

 

END