Permit submitted for second helium well in the US

Investment Memo: GGE 2022

General: Exploration

Our 2021 Catalyst Hunter Pick of The Year Grand Gulf Energy (ASX: GGE) has confirmed it is fast tracking permitting for its second helium well at its US helium project.

With the Jesse #1A well intercepting a large 62 metre gas column, GGE has “accelerated” the permitting process for a second helium well over its project area.

GGE expects to drill this second well in Q3 2022.

While the announcement didn’t detail where the next round of drilling would be targeted, in our last note we covered all of the follow up exploration prospects inside its project area and mentioned that the next round of drilling would be dictated by the results from the Jesse #1A well.

If a commercial discovery is confirmed we could see GGE drill the same structure to increase flow rates and expand the reservoir size. Alternatively, GGE might look to drill an exploration well over another one of its prospects.

Below is an image from our last note showing the four main prospects that sit inside GGE’s project area.