Oak Securities Sets Ambitious Price Target For Quantum Helium

In 1993, a well was drilled in the Four Corners region of the US and found non-flammable gas with helium concentrations of about 2.7%. The operator walked away because helium wasn't considered valuable at the time. More than three decades later, a company called Quantum Helium has taken over that well and is now testing it, hoping to turn a long-abandoned curiosity into a commercial helium operation. Equity research analyst Peter Hitchens of Oak Securities has just published a detailed note on the company, setting an ambitious price target of 0.064 pence per share.

From Disparate E&P to Focused Helium Explorer

Quantum Helium didn't start out as a helium company. Under the leadership of Howard McLaughlin, the company transformed itself from a fairly disparate E&P (exploration and production) business called Mossman into a focused onshore US helium explorer. The company has established itself in the Four Corners Helium Play, a proven helium area, by acquiring a large portfolio of acreage. They currently have a couple of existing wells on that acreage and are working to expand operations into a significant helium production business.