Nov 18, 20212 min
Grand Gulf Energy has leased another 3,703 acres at the Red Helium Project in Utah, increasing the overall land position by over 16%, helium acreage increasing to a total of 27,303 acres. The leasing program has taken place before the release of its Red Helium Project (expected to spud in early 2022).
The Red Helium Project lease position has increased from 23,600 to 27,303 acres with leasing activities to continue ahead of the release of the maiden Prospective Resource which is expected in the near term.
All recently leased acreage is strategically located freehold land which will ensures a shorter streamlined timeframe for permitting exploration wells, pipelines and future developments.
The Company has focused its land acquisitions to date primarily on freehold land and to a lesser extent state land (under an exclusive other business agreement (OBA)). Ranking of preferred drill sites is advanced with ground truthing completed for several drill sites. Drill permitting applications are currently being prepared ahead of the expected first well spud date early next year.
About the Red Helium Project
Grand Gulf has a 25% interest (with a right to secure a further 50% interest (total of 75%)) in incorporated JV company Valence Resources LLC ('Valence') which owns the Red Helium Project.
The Red Helium Project provides exposure to the burgeoning helium industry in a known helium producing area with: Drill-ready targets proximal to dedicated infrastructure
27,303 acres (private leases/Utah state leases under an OBA) leased in drill-friendly Utah - leasing is ongoing
Structurally high to and 8 miles west of Doe Canyon Helium Field and processing facilities (Air Products Inc - market cap: US$67B1)
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 proximal to the leased area
20 miles south and connected by pipeline to the operational Lisbon Helium Plant
Current helium pricing is approximately $280/mcf2