Progress Tracker
Grand Gulf Energy
ASX: GGE
OTCQB: GRGUF
Disclaimer: We are NOT geologists - this document is used by our team to internally to try and track GGE’s progress with its drilling program, it should not be relied upon by anyone to make any decisions. This document will change over time as the project evolves. For all disclaimers and disclosures please visit our website.
Our Big Bet:
GGE makes a commercial helium discovery, ties it into the existing local processing infrastructure, and becomes a USA helium producer - or gets taken over.
(NOTE: This is what we think the ultimate success scenario looks like for this particular Investment over the long term (3+ years). There is a lot of work to be done by the company to get to this outcome and obvious risks to which need to be considered, some of which we list in our GGE Investment Memo.
02 September 2021 - GGE acquires helium project in Utah, USA.
GGE signs an agreement to acquire up to a 75% interest in a helium project in Utah, USA.
Deal summary:
GGE pays:
Helium price: US$280/mmcf
Project highlights
15 miles away from the second largest US helium discovery in 70 years - Doe Canyon Helium field ✅
Geologically analogous to the operating Doe Canyon Helium field ✅
20 miles from a processing plant - Lisbon gas processing plant capable of producing 99.9995% helium (used in semiconductor manufacturing) ✅
In a region full of pipeline infrastructure to tie in a new discovery quickly. ✅
US$50BN+ in new chip factories being built in neighbouring US states ✅
18 November 2021 - Acreage size increased by 16%.
Key takeaways:
Helium price: US$320/mmcf
08 December 2021 - Maiden prospective helium resource released
Key takeaways:
15 December 2021 - GGE increases ownership in project to 85%
Key takeaways:
17 January 2022 - Well permitting starts & exploration manager appointed
Key takeaways:
Helium price: US$250 - 400/mmcf
09 March 2022 - Drilling contract signed
Key takeaways:
Helium price: US$250 - 400/mmcf
16 March 2022 - Helium offtake agreement BEFORE a discovery
Key points of the offtake agreement:�
Helium price: US$605/mmcf
25 March 2022 - Jesse#1 drill site work begins
04 April 2022 - Additional drilling locations identified
Key takeaways:
Helium price: US$2,000-3,000/mmcf
05 April 2022 - Drilling permit for Jesse #1 approved
Key takeaways:
Read our full commentary on this news
11 April 2022 - Strategic alliance with Paradox Resources
Key points of the strategic alliance:
26 April 2022 - Jesse #1A well spudded
Key takeaways:
Our bull/base/bear case expectations:
Helium price: US$2,000-3,000/mmcf
30 May 2022 - 203 ft (62 metre) gas column intercepted
Key takeaways:
There are three key pieces of information needed for GGE to announce a commercial discovery:
Helium price: US$2,000-3,000/mmcf
29 June 2022 - Helium discovery confirmed
Key takeaways:
Three key pieces of info needed to announce a commercial discovery:
Helium price: US$2,000-3,000/mmcf
20 July 2022 - Project ownership now 70%, earning in a total of 85%.
Key takeaways:
31 August 2022 - Workover rig on site ahead of flow test
Key takeaways:
Final piece needed to announce a commercial discovery:
What’s next and what do we want to see?
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Final piece needed to announce a commercial discovery:
Our bull/base/bear case for the flow rates
Where GGE is at right now
09 September 2022 - Flow testing started
21 September 2022 - Results from flow testing
Results sit firmly inside “base case” and helium grades exceed our “bullish case”.
Grading of GGE’s first ever helium well.
What we know and what’s next for GGE?
What’s next:
Drilling of next well 🔄
Key takeaways from first well:
2023 GGE Investment Memo
What’s next for GGE:
Drilling of Jesse #2 well (Q4-2022 / Q1-2023) 🔄
Our bull/base/bear case expectations for the flow rate are as follows:
Aiming to avoid water/gas contact zone so a flow test can be produced.
05 January 2022 - Drill permits granted
Drilling of the Jesse #2 well 🔄
What we want to see from the drill program:
07 March 2023 - Jesse-2 spud date = 12th March 2023.
Drilling of the Jesse #2 well 🔄
What we want to see from the drill program:
15 March 2023 - ⚠️Jesse-2 well spudded⚠️
What we want to see from Jesse-2:
21 March 2023 - Jesse-2 well update:
What we want to see from Jesse-2:
Well is now at 3,135 feet.
Total targeted depth is ~8,150 feet.
29 March 2023 - Jesse-2 well update:
What we want to see from Jesse-2:
Well is now at 5,928 feet.
Total targeted depth is ~8,150 feet.
03 April 2023 - Jesse-2 well update
Results likely to be days away now.
Here is what we want to see from the Jesse-2 well:
Well is now at 7,050 feet.
Total targeted depth is ~8,150 feet.
24 April 2023 - Jesse-2 well result
Here is how the Jesse-2 well stacked up against our expectations:
Next well planned already: