- Grand Gulf Energy (GGE) receives approval to drill a third location at its Red Helium project in the Paradox Basin of Utah
- The company is preparing for its Jesse-2 well to penetrate the top of the Leadville formation next week
- With the new drilling permit in hand, GGE says it would be able move ahead with a follow-on development well if Jesse-2 proves to be successful
- So far at Jesse-2, compositional analysis of mud gas returns identified multiple zones with helium concentrations 17 times above background levels
- GGE shares last traded at 2.3 cents on April 5
Grand Gulf Energy (GGE) has received approval to drill a third location at its Red Helium project in the Paradox Basin of Utah.
The Utah Division of Oil, Gas and Mining signed off on the drilling permit which the company said would enable a follow-on development well if its current Jesse-2 well proves to be successful.
Drilling at Jesse-2 has been progressing, with penetration into the Leadville reservoir anticipated next week.
So far, compositional analysis of mud gas returns identified multiple zones above and within the salt seal, with helium concentrations 17 times above background levels.
Although the zones do not represent commercial targets, GGE said the helium concentrations observed prove a working helium system is present, which is a “positive indication” for the primary Leadville reservoir target.
The drill rig will set seven-inch casing in the top of the Leadville formation before drilling ahead to the upper and middle formation.
GGE shares last traded at 2.3 cents on April 5.