Grand Gulf on the home stretch to testing Utah helium well

Grand Gulf will soon be able to assess the ability of its Jesse#1A discovery well in Utah to produce helium after securing the required work-over rig.

The rig will run a production log, isolate the gas column – samples from which returned between 0.44% to 0.65% helium – and carry out flow testing to determine reservoir deliverability and obtain a representative helium sample.

While data from the well has already been incorporated into well engineering and design for future wells at the Red Helium project to maximise the chance of success and optimise flow, this design work will be further refined by information gained from the forthcoming production log and flow test.

Grand Gulf Energy (ASX:GGE) is not sitting idle while waiting for the rig to start operations though.

It is already working to rank and prioritise multiple locations on the large contiguous area that the Jesse discovery structure represents along with other mature independent prospects in the Red Helium area ahead of a second well to be drilled later this year.

Potential company-maker

Initial results from Jesse#1A have been hugely encouraging for the company despite the inability to carry out stable flow testing due to water ingress and reservoir pressures being sub-hydrostatic.

Work carried out on the well has already confirmed the presence of a large 203-foot gas column, helium concentrations above the 0.4% found in the producing Doe Canyon project, and bottomhole pressure in line with virgin pressure modelling at Doe Canyon.

Grand Gulf’s pre-drill gross unrisked prospective resource estimate of 10.9 billion cubic feet of helium is likely to be on the money (and possibly a little bit conservative), which is a fantastic outcome for what is essentially a wildcat well on a new prospect.

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.