Grand Gulf Energy (ASX:GGE) reports new data that provides an ‘exciting’ upside for the Jesse-1A well within its Red Helium Project in Utah, US.
The build-up data assessment comes from an independent international engineering contractor, Blade Energy Partners, and shows that an inexpensive Jesse-1A workover focused on zonal isolation and stimulation could potentially yield ‘significant’ value for the company.
Based on interpretations of the Jesse-1A drill stem tests and modelling, the upper reservoir in the Jesse-1A wellbore has the potential to flow at an initial production rate of 5 million standard cubic feet per day of raw gas or greater, subject to successful isolation and stimulation.
Grand Gulf Energy Managing Director Dane Lance says: “The company is highly encouraged by the modelling results indicating reservoirs with the potential for significant helium flow in the Jesse-1A well and surrounding area.
“The results de-risk reservoir deliverability for the Jesse-3 well and provide a potential re-completion of the Jesse-1A wellbore that could generate significant value for a modest cost”
The results de-risk reservoir deliverability for the Jesse-3 well and provide a potential re-completion of the Jesse-1A wellbore that could generate significant value for a modest cost. The company now has a range of opportunities across the Red Helium Project, and we look forward to being back in the field to confirm the modelling results with a successful flow.”
Following this announcement, Grand Gulf’s share price surged 33.33% to close at $0.012 on Friday 2 June 2023.
Meanwhile, Grand Gulf is currently evaluating potential remediation/stimulation options for the Jesse-2 well based on feedback from Blade. These include a combination of matrix acidization and the potential to drill a short-radius horizontal well for less than US$1 million.
Grand Gulf Energy is an independent exploration and production company headquartered in Australia, operating and exploring in North America. The Red Helium Project is a pure-play helium exploration project located in the Paradox Basin, Utah.
Write to Aaliyah Rogan at Mining.com.au
Images: Grand Gulf Energy Ltd
