Jun 1, 20233 min
Blade Energy Partners, an independent engineering contractor, recently completed an independent review of Grand Gulf Energy's assets focused on the drilling data and petrophysical logs of the Jesse-1A and Jesse-2 wells. According to Blade's analysis, the upper reservoir in the Jesse-1A wellbore has the potential to produce over 5 mmcf/d of raw gas. In Oct'22, Grand Gulf had revealed helium concentrations of ~0.96% at Jesse-1A, which amounts to ~17.5 mmcf/y of helium. The company plans to undertake cost-effective workovers to isolate and stimulate the reservoir, potentially generating significant value. Furthermore, Grand Gulf is considering remediation and stimulation options for the Jesse-2 well, which appears to be non-commercial.
Press Release:
Grand Gulf Energy Ltd is pleased to advise of the results of a technical review by Blade Energy Partners (Blade), an independent international engineering contractor with extensive petroleum engineering, carbonate completion and stimulation experience. Blade provides leading-edge expertise relating to the subsurface, drilling, completion, production, and materials.
Blade reviewed Grand Gulf’s provided Jesse-1A and Jesse-2 drilling data and petrophysical logs, with a focus on interpreting the Jesse-2 underbalanced drilling data and Jesse-1A drill stem test results for future recompletion opportunities.
Based on interpretation of the Jesse-1A drill stem tests and modelling completed by Blade, 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 (MMscfd) of raw gas or greater after successful isolation and stimulation. Jesse-1A returned up to a 1% helium concentration from a downhole sample significantly exceeding pre-drill expectation, with a 200 foot gross column and 101 feet of net pay (independently audited).
Blade’s analysis and assessment provides exciting upside potential for the Company’s Jesse-1A well as an inexpensive workover focused on zonal isolation and stimulation that potentially may yield significant value for Grand Gulf.
Jesse-3
The information gained from the Blade engineering review has been incorporated into a Grand Gulf subsurface, drilling and completion field review of the third Jesse well location and to optimise future drilling and completion design.
The calculated potential productivity of the Leadville reservoir in the Jesse-1A well indicates a potential zone of reservoir fairway between the Jesse-1A and Redd-1 wells. Both wells have evidence of vugular secondary porosity on petrophysical logs reducing reservoir deliverability risk by targeting this area for the third Jesse well. The new wellbore at Jesse-3 will target permeable reservoir with reduced operational completion risk.
Jesse-1A Recompletion
As a result of Blade’s review, the upper Leadville in the Jesse-1A wellbore has been identified and prioritised for recompletion following the forthcoming Jesse-3 well.
The currently proposed recompletion of the Jesse-1A wellbore would be to case and perforate the upper and middle Leadville with focussed zonal isolation and stimulation through matrix acidization before flow-testing and preparations to tie-in for production. The well also has the potential to be deepened to include testing underlying units, such as the Devonian McCracken Formation, which is a proven helium producer regionally. It is estimated the above work could be undertaken for less than US$1m.
The Company is also currently evaluating potential remediation/stimulation options for the Jesse2 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$1m.
Managing Director Dane Lance Commented:
“Blade Energy Partners are a high calibre independent international upstream engineering contractor with significant carbonate modelling, completion and stimulation experience. The Company is highly encouraged by the modelling results indicating reservoir 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 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 test.
The compelling fundamental commercial and midstream pillars of the Red Helium Project remain unchanged and are in fact enhanced by the 1% helium sample at Jesse-1A which greatly exceeded pre-drill expectation. The Company has the ability to quickly monetise a commercial well to generate near term free cash flow with minimal time and cost in an extremely buoyant helium market”