Helium project ownership increases to 70%

This morning Our 2021 Catalyst Hunter Pick of The Year, Grand Gulf Energy (ASX: GGE), took its ownership interest in its helium project in Utah, USA, to 70%.

This comes after GGE renegotiated its earn-in agreement in December to increase its eventual ownership to 85% of the project.

After drilling the first well and contributing more than the required US$1.5M GGE today, confirmed its ownership interest of the project now sits at 70%.

Below is an update of where GGE is with respect to the acquisition terms:

GGE still holds the right to increase its ownership interest to 85% by contributing a further US$1.5M to two more wells.

With planning already underway for the second well in Q3-4 this year, we could see GGE achieve these milestones well before the 30th September 2023 deadline.

Next:

We are waiting to see GGE follow up its helium discovery at its Jesse #1A well with a workover rig in mid August. The ultimate aim will be to produce a commercially viable flow rate.

To see where we set our expectations going into that flow testing program, check out our previous GGE note here: GGE confirms helium discovery - next step is to bring it to the surface.