Highlights

  • Jesse-1A well confirms high-quality helium reservoir with 101 feet net pay and 1% helium
  • Global helium shortages surge prices, driven by Strait of Hormuz closure and Qatar LNG damage
  • Grand Gulf begins technical review and third well feasibility to capitalise on rising demand

Grand Gulf Energy Limited (ASX:GGE) holds an 83% stake in the Red Helium Project in south-east Utah, where the Jesse-1A well has confirmed a significant helium-bearing reservoir. The well encountered over 200 feet of gas column, including 101 feet of net pay with 1% helium, and achieved strong reservoir pressure of 2,465 psi, producing around 1 million cubic feet per day of gas. The onset of the Iran conflict has disrupted global helium supply, causing prices to more than double due to the closure of the Strait of Hormuz and damage to Qatar’s Ras Laffan LNG facility. In response, Grand Gulf is undertaking a comprehensive technical review, optimising its land position, evaluating seismic data, and assessing the feasibility of a third helium well, aiming to leverage rising US and global helium demand.

Jesse-1A Confirms Helium Potential

The Jesse-1A well marks a milestone for the Red Helium Project, confirming a well-pressured, helium-rich reservoir. With 101 feet of net pay and a 1% helium content, the well produced approximately 1 million cubic feet per day, on trend with pressures at the nearby Doe Canyon Field. Post-acid stimulation results showed fresher-than-expected formation waters, suggesting the lower Leadville zone may be water-bearing, and highlighting the need for further analysis. This strong discovery validates Grand Gulf’s strategy to expand helium production in the US and positions the Red Helium Project to benefit from elevated helium prices driven by global supply constraints. The Company is now focused on optimising development, evaluating existing seismic surveys, and planning a potential third helium well.

Helium Supply Disruptions and Market Demand

Global helium supply is under pressure as Qatar, a major exporter, curtails shipments due to the Iran conflict and damage to the Ras Laffan LNG Plant, reducing annual helium output by an estimated 14%. The closure of the Strait of Hormuz has intensified short-term scarcity, with buyers competing for limited spot market supply, driving prices sharply higher. Helium is critical for semiconductor manufacturing, AI data center cooling, MRI scanners, aerospace applications, and fiber-optic production, with few substitutes available. These supply disruptions create a strategic opportunity for US-based projects like Red Helium to capture growing domestic and international demand. Grand Gulf is well positioned to capitalise on this trend, advancing exploration, optimising its land, and preparing for future helium production expansion.