- Grand Gulf Energy (GGE) says initial log interpretation indicates a gross gas column of 203 feet within the Jesse#1A well in Utah
- The company notes the Jesse#1A well has similarities to helium-producing wells in the nearby Doe Canyon helium field which is “highly encouraging”
- Grand Gulf has also detected a number of zones with elevated helium concentrations in the Leadville Formation target
- In about two weeks, Grand Gulf Energy will run the 4.5-inch production tubing, acidise the formation, and perform flow testing to confirm helium concentration and commercial flow rates in the well
- Company shares are down 3.13 per cent to trade at 3.1 cents at 11:40 am AEST
Grand Gulf Energy (GGE) has provided an update on its Jesse#1A well within the Red Helium project in Utah.
Initial log interpretation has indicated a gross gas column of 203 feet, with highly dolomitised reservoir throughout the well. According to the company, the log character has similarities to helium producing wells in the nearby Doe Canyon helium field.
Quadrupole mass spectroscopy work detected multiple zones with elevated helium concentrations of up to 15 times background levels at 90 parts per million (ppm) helium within the Leadville Formation target.
These observations follow the company’s recent announcement about detecting helium concentrations up to 37 times above background levels at 386 ppm helium above the Leadville Formation target within the Jesse#1A well.
“The Jesse#1A initial log results from the primary Leadville Formation target indicating reservoir development and a large gas column analogous to the Doe Canyon helium field are highly encouraging and further confirmation of the technical basis of the Red Helium project,” Managing Director Dane Lance said.
The company has secured a workover rig which will mobilise to the well site in about two weeks. The rig will run the 4.5-inch production tubing, acidise the formation, and then perform flow testing to confirm helium concentration, commercial flow rates and connected reservoir properties.
Grand Gulf Energy said the flow test will be the “ultimate determinant” of a successful discovery.
Company shares were down 3.13 per cent to trade at 3.1 cents at 11:40 am AEST.