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 27,303 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 Undertook a capital raising of A$3.3 million to fund the acquisition and provide working capital to drill and cover transaction costs.