GGE Flows Helium To Surface
In an unexpected positive this morning, our USA helium Investment Grand Gulf Energy (ASX: GGE) announced that the company said that swabbing had “returned unexpected strong reservoir gas flows with high helium concentrations to surface resulting in high pressure gas blow requiring venting through the flare stack.”
A video of the event can be seen on GGE’s website (click the image to see it):
Importantly, the swabbing which takes place prior to a flow test, saw the well flow concentrations consistent with previous 1% downhole concentrations - “with the most recent sample collected measuring 0.78% helium.”
Bearing in mind that the nearby Doe Canyon has an average flow rate across its wells of ~20mmcf per day with helium grades of ~0.4% - we see today’s news as a positive outcome ahead of an all important, imminent, flow test.
IF GGE is able to successfully complete a flow test that proves helium can flow at a commercial rate, then our hope is that the company can quickly tap into existing pipeline infrastructure and start generating revenues from helium production.
GGE said today that on flow test success, moving to production could take place in a short timeframe - potentially as little as six months.
What’s next for GGE?
Jesse 1A re-entry (December 2023) 🔄
We want to see GGE complete the re-entry program without any issues and produce a commercially viable flow rate.
Over the next few weeks, we expect to see the following announcements:
- Re-entry begins (started today 12th December 2023) ✅
- Updates along the way (reached X depth, Reached Y depth etc..).🔄
- TD (Total Depth) reached, and GGE starts preparing to run a flow test.
The final step will be for GGE to run its stimulation/flow testing program.
Below are our bull, base and bear case expectations for the flow test:
- Bull case = >3 mmcf per day
- Base case = 1-3 mmcf per day
- Bear case = <1 mmcf per day
Catch up on our most recent GGE coverage
Articles:
GGE re-entering its USA helium discovery well - can it deliver a flow rate?
Quick Takes:
GGE re-enters helium well in the USA
