Grand Gulf has more helium than it thought at its Utah project

Grand Gulf’s Jesse#1A appears to have richer helium content than previously noted after analysis of downhole gas samples returned up to 0.96% helium grades.

The results of between 0.89% and 0.96% helium are higher than the previously announced 0.8% content, which was itself already higher than the company’s pre-drill estimates.

Helium currently commands high prices with spot prices reported to be over US$1,000 per thousand cubic feet due to continued supply shortage due to its scarcity and strong demand – being essentially irreplaceable for a range of high-tech applications such as MRIs, semiconductor manufacturing, cooling nuclear reactors and fibre optics.

As such greater concentrations of helium will mean the potential for Grand Gulf Energy (ASX:GGE) to enjoy better economics once it puts its Red Helium project into production.

Planning is currently underway for a second helium well, which will incorporate learnings from Jesse#1A to optimise gas production and minimise the risk of water ingress, to be drilled during the current quarter.

Red Helium project

The Red Helium project in Utah, where the Jesse#1A well is located, hosts an existing gas gathering system which leads straight to Lisbon Valley, making development a straightforward process.

It has pre-drill gross unrisked prospective resource estimate of 10.9 billion cubic feet of helium.

Grand Gulf also has an existing offtake agreement with Paradox Resources, which coincidentally owns and operates the nearby Lisbon Valley helium plant.

Permits for three development wells are also currently being progressed.

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This article was developed in collaboration with Grand Gulf Energy (ASX:GGE), 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.