Permits Secured: Grand Gulf Energy to Drill Jesse-3 in Utah

Grand Gulf Energy has secured all necessary government approvals for the commencement of the Jesse-3 well project. The Jesse-3 Application for Permit to Drill (APD) has received technical and regulatory approval from the Utah Division of Oil, Gas, and Mining (UDOGM).

This well will explore deeper pay zones beneath the Leadville primary target by casing and perforating the entire basinal stratigraphic section. Jesse-3 aims to target a structural high and reservoir identified through well control, serving as a twin to a historical well that successfully targeted hydrocarbons and demonstrated proven gas and reservoir potential.

The updated design for the Jesse-3 well includes casing and perforating the entire basinal stratigraphic section, enhancing the potential for Helium production beyond the existing Mississippian Leadville dolomite target (10.9 billion cubic feet) and the Devonian McCracken sandstone target (1.8 billion cubic feet). This approach also identifies three sub-salt secondary targets, which could offer additional helium resources. Should the well be successful, these deeper helium reservoirs will be perforated and tested, which involves only a modest additional cost. This expanded strategy aims to maximize the well's potential by capturing both primary and secondary helium resources.

The selected Jesse-3 location is 1,300 feet from the historic Redd-1 well and situated on a seismic high. Geological analysis predicts that the top of the Leadville formation at Jesse-3 will be 40 feet higher than at the Redd-1 well and 70 feet higher than at the Jesse-1A discovery well. Jesse-1A intersected a 200-foot gross gas column and 101 feet of net pay, indicating the potential for significant hydrocarbon presence at Jesse-3.

The Jesse structure (Redd-1) has proven gas in the Leadville formation at the Jesse-3 location, with gas detected on logs extending to the base of the McCracken formation. The well is interpreted as gas-bearing over a 700-foot gross zone, with potential for a deeper gas column extending up to 1,100 feet down to the granitic basement.

The permitted Earp-1 well location is situated 4,800 feet from and structurally 100 feet higher than the Gulf Unit-2 well. Earp-1 targets a closure in the horstal region of the Red Helium project, structurally elevated over 500 feet higher than the Jesse site. Gulf Unit-2 has proven gas in both the Leadville and McCracken formations, with a maximum intersection interpreted as gas-bearing over a 900-foot gross zone. Earp-1 is planned as an up-dip twin to Gulf Unit-2.

The Company is also preparing to submit a sundry application for the approved Earp-1 location to update the well design and engineering plans. This includes deepening the well to test for deeper pay zones below the primary Leadville target. By revising the well design, the Company aims to enhance exploration efforts.