Grand Gulf Energy Limited (ASX: GGE) (Grand Gulf or the Company) is pleased to provide shareholders with the following summary of its activities during the December 2021 quarter.
- Red Helium Project Updates
- Maiden Resource – On 8 December 2021 the Company announced a maiden Prospective Helium Resource of 10.9 BCF helium (most likely – P50) gross to incorporated JV company Valence Resources LLC (net 7.4 BCF to Valence). The Prospective Resource is expected to grow as leasing continues. The total (most likely – P50) helium Prospective Resource for the Red Project Area of mutual Interest (AMI) is 20.8 BCF, with a maximum (P10) of 57.6 BCF (Sproule calculations)
- Acquisitions – The Company acquired an additional 30% interest in Valence Resources LLC increasing its interest in the Project to 55% with a right to earn 85%
- Top Drilling Manager appointed – Experienced Drilling Engineer, Doug Frederick, has been appointed as Drilling Superintendent for the Red Helium Project:
- Ex-Shell engineer with 20 years of experience at neighboring Doe Canyon helium/CO2 field.
- Mr Frederick’s hands-on local knowledge is a major step towards implementing a large-scale drilling programme.
- Acreage increases – on 18 November 2021 the Company had increased its acreage position to 27,303 acres, this has subsequently been increased to over 29,000 acres within the 243,200 acre AMI in drill permitting-friendly Utah
- Well Permitting – Optimal well site selected and permitting commenced for the maiden helium well, Jesse #1
- Existing US oil production from the Desiree Field (39.6% WI) and Dugas & Leblanc #3 Field (61.8% WI) grossed a total of 12,314 bo andaveraged 148 bo/d during the quarter, net to GGE was 4,997 bo.
CAPITAL STRUCTURE AND FINANCIAL SNAPSHOT
|ASX Code||GGE||Ordinary Shares||1,283 million|
|Performance Shares||155 million||Option (2.5c exp 15/10/24)||60 million|
|Share Price||2.7 cent||Market Capitalisation||$35 million|
|Cash Reserves @ 30/09||$3.0 million||Producing Fields||2|
|Quarterly Net BO||4,997 bbls||Daily Net BO||60 bbls/d|