Utah Helium Acquisition

100% Acquisition of Kessel Resources Pty Ltd

  • Strategy: Binding agreement to acquire 100% of Kessel Resources Pty Ltd (“Kessel”), a Utah-focused helium company, that provides Grand Gulf with:
  • Exposure to the burgeoning helium industry in a known helium producing area – drill-ready targets and proximal to dedicated infrastructure
  • 250,713 acre AMI with over 23,600 acres (private leases/Utah state leases) leased in drill-friendly Utah (the Red Helium Project) – leasing ongoing with objective of 35,000 acres
  • Structurally high to and 8 miles west of Doe Canyon Helium Field and Plant (Air Products Inc – market cap: US$60B)
  • 190 km’s of 2D seismic across the AMI has been acquired and processed – drill targets established – trap identified is larger than the Doe Canyon Field
  • Historic wells with helium concentrations within and proximal to the AMI
  • 20 miles south and connected by pipeline to the operational Lisbon Helium Plant
  • Current helium pricing is approximately $280/mcf
  • ESG: Potential for significant 45Q Tax Credit revenue through sequestering of produced CO2
  • High Quality Management Team: Experienced Kessel oil and gas geologist Keith Martens to join the Board of Grand Gulf assisted by highly experienced partners and US-based operators, Four Corners Helium.
  • Liquidity and Financing: GGE to undertake a capital raising of A$3.3 million to fund the acquisition and provide working capital to drill and cover transaction costs.
  • Board & Shareholder support: The respective boards and major shareholders of GGE and Kessel have approved the transaction with the deal expected to close in September 2021.

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