New well location finalised - drilling this quarter

This morning our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) laid out its plan for its upcoming drilling program.

GGE plans to drill the Jesse#2 well this quarter.

The new well will be following up the helium discovery made earlier this year where GGE made a new US-based helium discovery with a >61m gross gas column (~31m of net pay - independently audited) and helium grades of up to 1%.

The main target with the new well (Jesse#2) will be to avoid the gas/water contact zone that was hit with the first well and to do this, GGE has refined its drilling location based on all of the data available from its previous drilling program, historic results and 2D seismic data.

More specifically the Jesse#2 well will be looking to avoid hitting the water contact zone by terminating the well depth ~15m above the identified gas/water contact zone at Jesse #1A.

Once the helium zones are hit, GGE will look to conduct a “bottoms-up flow test will be conducted to characterise the reservoir”.

If the flow rates are deemed commercial then GGE will look to put its discovery into production through nearby existing pipeline infrastructure.

We also note that GGE made mention of a planned third well at the drill ready ‘Earp’ prospect but the drilling location hasn’t been finalised yet.

Investment Memo update:

With GGE having completed its first drilling event and the details of its next well now explained we will be putting out an Investment Memo retro and launching our new GGE Investment Memo soon.

In our Memo we will restate our Investment Thesis and exactly what we want to see GGE achieve over the next 12 months.