Additional drilling locations identified

This morning our 2021 Catalyst Hunter Pick of the Year Grand Gulf Energy (ASX:GGE) announced that it had identified three new independent drilling prospects at its helium project.

The three new prospects came about after GGE reprocessed ~315km of historic seismic data and through the analysis of historical drilling data available over its project area.

These three new prospects come in addition to the Jesse prospect which GGE is now expecting to drill on 15 April. In the event of a successful drilling program, GGE plans to follow up with a second round of drilling in ~Q3 of this year.

GGE also confirmed that given the size of the Jesse prospect, on a successful discovery of a helium system it could quickly go back and drill into four different step out locations that were also picked up when analysing all the historical data.

With a helium offtake agreement already sorted with Paradox Resources, which owns the nearby Lisbon helium processing plant, GGE now has the optionality to expand the size of its project by drilling the new prospects.

The significance of all of this is that GGE is now approaching a milestone drilling program which could see the company go from explorer to producer (contingent on a successful well) and now has the exploration upside to increase its production capacity either through step out wells at the Jesse prospect or by drilling the newly identified independent prospects.

The upcoming drilling program is the primary objective that we want to see GGE achieve this year:

What’s next: GGE has now confirmed that the drilling program will commence on 15 April. All that's left before then is for the drilling permits to be granted.