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Grand Gulf Energy (ASX:GGE) further progresses Jesse1#A well

ASX News, Energy
ASX:GGE      MCAP $12.57M
06 May 2022 11:19 (AEST)

Rock Formations. Source: Grand Gulf Energy

Grand Gulf Energy (GGE) has further progressed its Jesse1#A well, located within its Red helium project in Utah.

Red Helium has a P50 gross prospective helium resources of 10.9 billion cubic feet, with Jesse1#A targeting one of the four independent prospects within the project.

So far, the well’s top section has been drilled to a depth of 3095 feet and 9 5/8-inch casing has been successfully cemented.

The well is being drilled to a targeted depth of 8077 feet and run seven-inch casing before drilling begins to test the primary helium target at 8300 feet.

Notably, the well is next to Paradox Resources’ Lisbon helium processing plant, which the parties signed an offtake agreement.

Grand Gulf recently signed a helium offtake agreement with Paradox which provides a path to monetisation of the Jesse1#A well.

“To be testing the Jesse prospect with the drill bit in the Red Helium Project in under eight months from acquisition through permitting to spudding is testament to the amazing work of the fully integrated technical and operational team,” Managing Director Dane Lance said.

“We are extremely pleased with the drilling progress to date, with the potential for timely helium production when the US and world is experiencing one of the most notable shortages of helium in history. These circumstances successfully position Grand Gulf to take advantage of the current buoyant market conditions.”

On the market this morning, Grand Gulf were down 6.58 per cent and is trading at 3.6 cents per share at 11:14 am AEST.

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