Grand Gulf Energy (ASX:GGE) builds drill pad for Jesse #1 well – The Market Herald

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  • Grand Gulf Energy (ASX:GGE) Begins Drill Pad Construction for its Jesse #1 Well at the Red Helium Project in Utah
  • Drill pad construction officially began this week and is designed to accommodate the drilling rig as well as the wellhead production facilities.
  • The company expects the location to be ready in the next few days before the drill arrives on April 15.
  • This follows the company’s announcement last week of a helium extraction deal with Paradox Resources through a gas sales and processing agreement.
  • Shares are trading up 7.3% at 4.4 cents

Grand Gulf Energy (GGE) has begun construction of its Jesse #1 well pad on the Red Helium project in the US state of Utah.

Jesse #1 is the project’s first helium well, which the company acquired through a binding purchase agreement from Kessel Resources in September last year.

Construction of the drill pad officially began this week and is designed to accommodate the drilling rig as well as the wellhead production facilities.

The company expects the location to be ready in the next few days before the drill arrives on April 15.

This follows the company’s announcement last week that it had entered into a helium offtake deal with Paradox Resources after signing a gas sales and processing agreement.

According to GGE, the new deal paves the way for the monetization of Jesse #1, which is expected to kick off next month.

Aztec Well Maintenance has been contracted to undertake the drilling which, in addition to appraisal and flow testing, is expected to cost approximately US$1.6 million (AUD$2.2 million).

By noon, trading shares rose 7.3% to 4.4 cents.

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