Grand Gulf getting pretty excited about stimulation at Red Helium projection
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Grand Gulf draws ever closer towards flow testing its promising Jesse#1A helium exploration well in the Red Helium project with formation stimulation works currently underway.
Once this work is completed, the workover rig will run production casing and perform several days of flow testing, which along with laboratory analysis of sampled helium concentration, will form the basis for determining if the well is commercial.
The upshot? Grand Gulf Energy (ASX:GGE) has good reason to be excited.
Its first ever helium exploration well has met or exceeded all expectations to date, intersecting a 203ft gross gas column in the Leadville Formation high to formation with dolomitization, which improves reservoir quality, and helium shows observed throughout the reservoir.
Log character was also found to be analogous to producing wells at the Doe Canyon field about 15 miles to the east, which is another tick in its favour.
A successful test will unlock the Red Helium project’s P50 gross prospective helium resource of 10.9bcf, which could be worth a conservative US$6.54bn assuming a wholesale price of US$600 per thousand cubic feet of gas.
This article was developed in collaboration with Grand Gulf Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.