Helium production test underway - initial results next week.
Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) is now flow testing its first ever pure play helium well at its US helium project.
GGE announced today that follow up operations are underway with the ultimate aim of delivering a successful flow test at its helium discovery.
GGE is following the discovery made at its Jesse #1A well where the company confirmed commercially viable helium concentrations of up to 0.65%.
The final part of unlocking its helium project that could result in the company transforming from helium explorer to producer is to prove that the well can produce commercially viable flow rates.
GGE expects initial results from the flow testing program as early as next week.
With some preliminary flow test results expected next week, here is what we know GGE have so far and what we are still waiting on:
- A proven helium structure that can be followed up with additional drilling. ✅
- Commercially viable helium concentrations above our 0.4% expectation (GGE’s grades were between 0.44 and 0.65%). ✅
- Commercially viable flow rate 🔄- (Preliminary results expected early next week).
Before this drilling program, we had detailed our bullish/base/bear case expectation for the flow test results.
Our expectations are primarily based on the flow rates at the nearby already producing Doe Canyon helium field.
To check out our detailed breakdown of the expectation, click here to read our previous note.
