Grand Gulf Energy (ASX: GGE) has entered into a memorandum of understanding (MoU) with TSXV-listed Sage Potash to jointly explore for helium and potash within the Red Helium project in Utah. The collaboration aims to leverage geographic and operational synergies between the Red Helium and Sage Plain projects, both situated in the Paradox Basin. Under the MoU, the companies will share costs associated with a proposed 3D seismic survey targeting both helium and potash, as well as potential drilling activities. Grand Gulf anticipates that this strategic agreement will significantly reduce the cost of future exploration and development at Red Helium.
Grand Gulf’s director, Fergus Kiley, highlighted the potential for cost reduction through this collaboration. The company previously drilled the Jesse-1A well in June 2022, confirming a gas column greater than 200 feet with 101ft of net pay and 1% helium. Re-entry into the Jesse-1A well in December 2023 resulted in a flow of 1 million cubic feet per day of raw gas with high helium concentrations, consistent with the initial down-hole sample. Grand Gulf views the upcoming 3D seismic survey as crucial for de-risking future drill locations and establishing commercial helium flows, while the company continues pursuing its offshore Namibia oil and gas block interests.
