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Grand Gulf Energy (ASX:GGE) detects high helium concentrations at Jesse-1

ASX News, Energy
ASX:GGE      MCAP $12.57M
12 May 2022 12:33 (AEST)

Jesse-1 drill site preparation. Source: Grand Gulf Energy

Monitoring work at Grand Gulf Energy’s (GGE) Jesse-1 well in Utah has detected helium concentrations up to 17 times background levels.

The well is the company’s maiden pure-play helium well located within its Red Helium project in the Paradox Basin.

Following spudding in April, the company has undertaken continuous mud gas monitoring using quadrupole mass spectroscopy.

This work has detected several zones with elevated helium concentrations that Grand Gulf said are up to seventeen times background levels at 124 parts per million helium.

While not yet at target depth, the company said the concentrations are indicative of a working helium system, marking a positive signal for deeper helium potential.

Drilling of the well is reportedly on track, having reached the intermediate section at a depth of 5875 feet.

The mud systems is now being changed out to drill through to the anhydrite formations at 1700 feet.

Grand Gulf is working towards 8100 feet, before running a seven-inch casing and drilling to test the primary Leadville Formation helium target at an anticipated depth of 8300 feet.

While drilling progresses the company said it will continue to monitor gas compositions.

Shares were up 15 per cent, trading at 3.5 cents at 12:32 pm AEST.

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