Grand Gulf upbeat as work-over rig mobilises to flow-test helium Jesse#1A well

After highly encouraging initial drill results, a work-over rig has been sourced and has begun mobilisation to the Jesse#1A well, within the wider Red Helium Project in Utah.

At the end of May, Grand Gulf’s (ASX:GGE) first helium exploration well met all expectations, intersecting a 203ft gross gas column in the Leadville Formation, which was intersected high to prognosis.

The work-over rig will now stimulate the formation through acidisation to maximise flow rates, run the 4.5-inch production tubing and perform several days of flow testing.

As per industry standard practice, flow rates and laboratory analysis of sampled helium concentration will be the ultimate determinant of a successful commercial discovery.

According to GEE, gamma ray correlation of the Jesse#1A well indicates the primary Leadville Formation target came in structurally high to prognosis, with helium shows throughout the reservoir.

Drilling of second well to begin in Q3

A full suite of modern logs was run with preliminary petrophysical interpretations indicating a gross gas column of 203ft, with highly dolomitised reservoir throughout, largely exceeding predrill expectations.

Given the initial Jesse#1A drill results, demonstrating the potential of, and significantly de-risking the Greater Red Helium project, the company has accelerated its permitting process with the submission of an Application for Permit to Drill to the Utah Division of oil, gas and mining to support drilling a second Red Helium Project well in Q3 2022.

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.