GGE re-enters helium well in the USA
Our US helium Investment Grand Gulf Energy (ASX: GGE) just kicked off its Jesse 1A re-entry program.
In June last year GGE announced a new helium discovery with its Jesse 1A well.
At the time GGE hit ~31m of net pay and helium grades up to ~1%.
The key thing missing at the time was a successful flow test that showed the well can produce helium consistently.
Then GGE drilled the Jesse-2 well, which produced a flow rate BUT fell short of production rates that would be considered “commercially viable”.
The primary issue for both wells was the water table at the bottom of the wells.
Today GGE re-entered its Jesse 1A well with the primary goal being to try and get a commercially viable flow test from the well.
GGE’s strategy this time is to isolate and cement in place the water wet lower Leadville reservoir so that the upper section can be flow tested.
Here is how it would look:
We did a deep dive on the Jesse 1A re-entry program last week.
See that note here: GGE re-entering its USA helium discovery well - can it deliver a flow rate?
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
