GGE sidetrack well design complete

Our US helium Investment Grand Gulf Energy (ASX: GGE) has just put out an update on its project in Utah, USA.

GGE first acquired its helium project in 2021, since then, it has drilled multiple wells, made a helium discovery and showed that its project can flow helium to surface.

GGE has so far accomplished the following:

• ✅ Helium Discovery at Jesse 1A - GGE’s first well hit a 61m gross gas column (net pay of ~31m), returned 1% helium to surface, which came from a productive and strongly pressurised reservoir.
• ✅ GGE extended its discovery - Jesse-2 was drilled ~1.5 miles away from Jesse-1A, extending GGE’s helium discovery.
• ✅ Helium grades up to ~1% - This is a grade that is considered commercial AND above our 0.4% base case expectations. The result was also consistent with Jesse-1A which delivered ~1% helium grades.
• ✅ Flow rate - Late last year GGE produced a raw gas flow rate of ~1 mmcf/d.

GGE’s latest work program was a re-entry into the Jesse-1A well in December 2023.

The main objective for the re-entry program was to try and run an isolation/stimulation program that would optimise flow rates for the well.

GGE managed to produce a raw gas flow rate of ~1 million cubic feet per day with helium grades of 1% despite experiencing “downhole obstructions”.

GGE’s plan now is to go back and drill the Jesse-1A sidetrack well which GGE thinks will solve for the technical issues seen in the re-entry program.

Today, GGE announced that its contractors Walsh Engineering had completed the design works for the Jesse-1A sidetrack well.

GGE is now working toward getting regulatory approvals and ordering long lead items for the drill program.

How does the sidetrack well compare to the re-entry from last year?

At a very high level, a lot of the differences in the two programs will be in the quality of the wellbore.

With the Jesse-1A re-entry, GGE was re-entering a hole that hadnt been cased with cement.

The sidetrack well would be drilled and then cased with cement so that downhole condition are a lot cleaner.

The cemented well will mean GGE can go in and run the perforation/stimulation program at whichever part of the well it thinks it has the best chances of success.

Below is an image showing how the sidetrack well will look:

What’s next for GGE?

Regulatory approvals and long lead items 🔄

GGE confirmed in today’s announcement that the focus was on getting long lead items ordered and regulatory approvals for the sidetrack well.