Helium offtake agreement locked in early

GGE yesterday announced that it has partnered with Paradox Resources to explore future opportunities together in the helium space.

Paradox is a major player in the North American premium helium market with advanced processing capability. It owns the Lisbon helium processing plant located 20 miles north of the GGE’s helium project.

GGE points to the gas sales and offtake agreement with Paradox as further validation of the technical merit of its pure-play Red Helium Project, where it is targeting a gross prospective resource of 10.9 bcf.

The signed drill contract and offtake agreement provide line of sight to monetisation on success GGE’s maiden helium well, Jesse#1 which is scheduled for spud next month.

The company notes that this deal comes at a time when helium, one of the world’s most critically scarce commodities, is needed most.

We provided our take on the deal in a Note to Wise-Owl readers yesterday: GGE gets helium offtake BEFORE drilling, and explain how it relates directly to the third objective in our Investment Memo (Progress commercialisation of the gas resource) that we want to see GGE achieve in 2022.