- Grand Gulf Energy (GGE) shares are up today following its agreement to purchase Kessel Resources, which holds interest in a helium project in Utah
- To pay for the helium project the energy company will raise $3.3 million through a capital raise
- Under the raise, the company will issue 330 million shares at one cent each to investors
- The purchase is expected to be completed this month
- On the market this morning, Grand Gulf is up 45.8 per cent and is trading at 1.8 cents per share
Oil and gas company Grand Gulf Energy (GGE) shares are up today following its agreement to purchase Kessel Resources.
Kessel is a privately held Australian company which holds interest in the Red Helium Project in Utah.
Red Helium is located in the southeast of Utah in the Four Corners area which is often described as the ‘Saudi Arabia of helium’ given the plethora of producing fields in the area.
To pay for the purchase, Grand Gulf Energy will raise $3.3 million through a capital raise.
Under the raise, the company will issue 330 million shares at one cent each to investors.
Notably, major shareholders and boards have approved the purchase which is expected to be completed this month.
Chairman Craig Burton is pleased with the purchase.
“The merger with Kessel creates an emerging helium exploration company with drill-ready prospects in a highly sought after helium-rich region,” Mr Burton said.
“With helium prices in excess of US$280/mcf Grand Gulf is well placed to take advantage of one of the world’s most critically scarce commodities. We look forward to combining with the Kessel team and growing the company for all shareholders going forward.”
On the market this morning, Grand Gulf is up 45.8 per cent and is trading at 1.8 cents per share at 11:38 am AEST.