Grand Gulf mobilises rig to flow test Jesse#1A helium well

Grand Gulf Energy has mobilised a rig to flow test the Jesse#1A helium well, part of its Red Helium project in Paradox Basin, Utah, USA.

The well recently recorded helium concentrations up to 0.65% and bottom-hole pressures consistent with nearby producing helium fields.

The plan now is to flow-test several individual zones within the Jesse#1A wellbore to determine gas flow rates and potential, obtain representative raw gas samples and ascertain helium concentrations.

Could be a company-maker

Grand Gulf Energy (ASX:GGE) considers Jesse#1A a potentially company-making helium well, recently increasing its stake in the Red Helium project from 55% to 70% after meeting earn-in requirements for the first well.

The information gained from the flow tests will be used to further characterise the reservoir and optimise production from Jesse#1A and future Red Helium project wells in a success case.

The next helium exploration well is planned for Q4 2022.

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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.