Voyager Life #VOY – M3 Helium Update – vertical well to be drilled at Hugoton North Play

Voyager is pleased to announce that, further to the announcement of 27 June 2024, M3 Helium Corp., (“M3 Helium”), a producer of helium based in Kansas, 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 commenced drilling of its sixth vertical well.

The well, named Carter 2, is being drilled at M3 Helium’s Hugoton North Play project and the rig has already been mobilised and delivered to site.  Drilling has commenced and will continue over the US public holiday on 4 July with completion, including casing, during the following week.  The M3 Helium team expect thereafter it may take a further week for perforating with the target of completing fracking before 31 July 2024. 

The well is located at section 1, township 19 south, range 31 west, Scott County, Kansas and about 1 mile to the west of M3 Helium’s most recently drilled well (Carter 1).  Carter 2 is expected to be drilled to a target depth of 2,900 feet and will utilise the Pason mud gas system to measure and report the quality of gases exiting the wellbore.

Total costs of the exercise are currently predicted to come in at least 10 per cent. below the budgeted US$300,000 previously announced due to M3 Helium being able to move quickly and secure a rig whilst it was available in the area.  Drilling costs will be paid for out of the proceeds of the  $500,000 loan facility (“Loan”) provided by Voyager to M3 Helium. A portion of the loan monies will be subject to passing of the resolutions at Voyager’s forthcoming general meeting.

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. 

Further announcements will be made during the drilling programme.

Nick Tulloch, Chief Executive Officer of Voyager, said: “We were clear when we announced our proposed acquisition of M3 Helium last week, along with the associated fundraising, that our intention was to use these funds in part to drill a further vertical well at the Hugoton North Play.  To be able to commence activities in under a week surpasses our own expectations and I hope illustrates the near term opportunity that we have.  The rapid completion of last week’s fundraising has enabled the team in the US to move fast to secure the rig and, through savings on logistics, we are confident that this new well will come in comfortably below budget.”

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’s North Play is part of the Hugoton gas field, one of the largest natural gas fields in North America.  The North Play potentially extends to 250 sections with recoverable gas, with each section being approximately 640 acres (one square mile).  Production to date has indicated a helium content of 1.25 per cent., a concentration that compares very favourably to other parts of the Hugoton gas field.  Analogous wells drilled by other operators within the North Play have averaged over 0.44 bcfg per well, meaning that, with four wells per section, M3 Helium estimates a potential of up to 440+ bcfg of recoverable gas across the entire area.  At a constant 1.25 per cent. helium content, M3 Helium estimates potential recoverable helium of over 5.5 bcf across the entire area