Drilling to start this quarter - Well pad construction underway
Our 2021 Catalyst Hunter Pick of the Year Grand Gulf Energy (ASX: GGE) has started building its well pad in preparation for its second well at its helium project in Utah, USA.
GGE expects to be drilling the Jesse-2 well before the end of this quarter.
The Jesse-2 well will follow up GGE’s discovery well (Jesse-1), which hit a proven helium structure with a grade up to ~1%.
The ultimate aim for Jesse-2 will be to see the company produce a commercially viable flow rate that warrants putting GGE’s helium discovery into production.
Here is what we know about GGE’s helium project now:
- ✅ A proven helium structure: A >61m gross gas column (with ~31m of independently audited net pay)
- ✅ Commercial helium grades: Helium grades of up to 1% returned to surface (higher than our 0.4% expectation)
For GGE to deliver a commercial helium project, it needs:
- 🔄 Commercially viable flow rate: GGE’s Jesse-2 well is being drilled with this goal in mind.
To see our deep dive on the Jesse-2 well, check out our most recent GGE note here: GGE helium drilling this quarter - can it unlock last year’s discovery?
