Grand Gulf’s first helium well hits encouraging 203ft gross gas column

Grand Gulf’s first helium exploration well has met all expectations, intersecting a 203ft gross gas column in the Leadville Formation, which was intersected high to prognosis.

Preliminary petrophysical interpretations indicate a highly dolomitised reservoir is present throughout the gas column, which appears to be consistent with or potentially superior to helium producing wells from the nearby analogous Doe Canyon field.

Grand Gulf Energy (ASX:GGE) noted that while mud gas returns were characteristically subdued due to operational parameters to prevent formation damage, quadrupole mass spectroscopy still detected multiple zones with elevated helium concentrations of up to 15 times background levels, with active evidence of a working helium system considered extremely encouraging technically

Precise helium concentrations will be determined by laboratory analysis of direct formation gas samples from flow testing.

The company has sourced a workover rig, which will be mobilised to the Jesse#1A well site in about two weeks.

It will run production tubing and acidise the formation before performing flow testing to determine flow rates, helium concentration and connected reservoir properties.

“The Jesse#1A initial log results from the primary Leadville Formation target indicating reservoir development and a large gas column analogous to the Doe Canyon helium field are highly encouraging and further confirmation of the technical basis of the Red Helium project,” managing director Dane Lance said.

“Similarly delivering the Jesse#1A drill program safely and on schedule, including the challenging Paradox Salt formations, demonstrates the quality of the drilling team and their operational planning.

“Further work is also progressing on the independent prospects and leads in the Red Helium project, as the company continues to deliver on its planned work program.”

Red Helium project

The Red Helium project has gross prospective helium resources of 10.9 billion cubic feet with Jesse1#A targeting one of four mature independent prospects.

In the event of success, the well can be quickly commercialised thanks to being immediately adjacent to an unutilised pipeline connected to Paradox Resources’ Lisbon helium processing plant.

Grand Gulf already has a helium offtake agreement in place with Paradox.

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.