GRAND GULF ENERGY LIMITED Red Helium Project Update
April 2022
Corporate Disclaimer
This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Grand Gulf (the "Company") - in any jurisdiction.
Shareholders should not rely on this presentation. This presentation does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this presentation are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
The information set out in this presentation does not purport to be all inclusive or to contain all the information which its recipients may require in order to make an informed assessment of the Company. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation.
To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any errors or omissions from this presentation arising out of the negligence or otherwise is accepted.
This presentation may include forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of the Company. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates.
Actual values, results or events may be materially different to those expressed or implied in this presentation. Any forward looking statements in this presentation speak only at the date of issue of this presentation. Subject to any continuing obligations under applicable law and the ASX Listing Rules, the Company does not undertake any obligation to update or revise any information or any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such forward looking statement is based.
Competent Person's Statement
The information in this report is based on information compiled or reviewed by Mr Keith Martens, consulting geologist/geophysicist to Kessel Resources. Mr Martens is a qualified oil and gas geologist/geophysicist with over 45 years of Australian, North American and other international executive oil and gas experience in both onshore and offshore environments. He has extensive experience of oil and gas exploration, appraisal, strategy development and reserve/resource estimation. Mr Martens has a BSc. (Dual Major) in geology and geophysics from The University of British Columbia, Vancouver, Canada.
Grand Gulf Energy Limited | Red Helium Update | 2 |
Red Helium Project
Strategic Pivot to Pure-play Helium Exploration Project
Prolific Location
- Helium-ProlificFour Corners area
- Drill Friendly Utah
- 250,713 acre AMI, > 29,000 gross leased
- Proximal to dedicated infrastructure
- 20 miles to 2 of 8 US helium plants
- Pipeline connected to Lisbon helium plant
- Mar '22 Helium Offtake Agreement
- Helium Price ~$605/mcf
- Mar '22 Strategic Alliance
De-Risked Geology
- Known Geology, 315km quality 2D seismic
- Vintage wells within AMI proved:
- Trap, Seal, Reservoir Presence, Gas Charge, Helium system within AMI
- 4 independent prospects with 2 drill ready locations and deeper under-explored potential
- Jesse#1A Key Objectives:
- Helium Presence / Concentration
- Reservoir Effectiveness / Flowrates
Large Resource
- Red Structural Closure
- 4 - 5 times Doe Canyon
- Doe Canyon Analog, 15 miles to East
- 3 - 5 bcf anticipated helium production
- High rate gas wells: Avg. IP ~20mmcfd
- Average helium grade ~0.4 - 0.5% with upside
- = high helium flow rates
- Dec'21 Maiden Helium Prospective Resource
- Gross P50 unrisked 10.9bcf1
Commitment to Project Delivery & Monetisation: Fully Funded for at least 2 Exploration Wells and Strategic Opportunities / Acquisitions2 | |||||
Sep '21 | Mar '22 | Appraisal & Greater Red Project Development | |||
Acquisition | GSPA / Alliance | ||||
21 Q3 | 21 Q4 | 22 Q1 | 22 Q2 | 22 Q3 | 22 Q4 |
Dec '21 | Apr '22 | Jesse#1A to Lisbon | |||
Maiden Resource | Jesse#1A | ||||
1 ASX announcement 8 December 2021, Maiden Prospective Resource, based on Sproule Report, detailed in Slide 4. 2 ASX announcement 20 April 2022, $11m placement, before costs
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Corporate Snapshot
US-Focused Helium Explorer with positive Energy production cashflow
Financial Information
ASX Trading Symbol | GGE |
Total Shares | 1,546 million |
Market Cap @ 4.7c | A$72.7 million* |
Net Cash @ 31 Dec 2021 | A$3.0 million |
Performance Shares/Rights | 165 million** |
Options (3 years at 2.5 cents each) | 60 million |
Options (3 years at 7.0 cents each) | 10 million** |
Options (3 years at 8.0 cents each) | 103 million** |
* Market Cap includes placement shares
** Options and 30 million performance rights subject to SH approval
OTCQB Listing: North American (NA) Visibility
OTC enhance visibility / accessibility of the company to NA shareholders and media partners.
Red Helium: Earning 85% of Valence1 | Earning | Max Cost $US |
Current Interest | 55% | |
Drilling first well by Oct '22 | 15% | $1.5M |
Drilling second well by Oct '23 | 7.5% | $1.5M |
Drilling third well by Oct '23 | 7.5% | $1.5M |
Total Payments Remaining | 85% | $4.5M |
Recoverable Helium (bcf)2 | P90 (1U) | P50 (2U) | P10 (3U) |
Gross to Valence (28,046 gross acres) | 7.6 | 10.9 | 12.9 |
Net to Valence (18,959 net acres) | 5.2 | 7.4 | 8.5 |
Net to GGE (earning 85% of Valence) | 4.4 | 6.3 | 7.2 |
Red Project Total | 7.9 | 20.8 | 57.6 |
The estimated quantities of helium that may potentially be recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal is required to determine the existence of a significant quantity of potentially moveable helium.
De-risked asset base | Low-cost exploration | Carbon market exposure |
Assets have existing wells with Helium | Multiple Drill Ready Targets: | 45Q Tax Credit upside through CO2 |
present and extensive 2D seismic | Future wells ~US$3.3m | sequestration potential |
Robust netbacks | Skilled executive team | Access to capital |
Low breakeven and low production costs with high torque to commodity prices
Management brings track record of North American asset development
ASX/OTCQB listing expands investor base, provides exposure to international capital
- Well cost overrun shared at earned WI split.
- ASX announcement 8 December 2021, Maiden Prospective Resource, based on Sproule Report. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
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Helium: Critical Path Irreplaceable Technological Enabler
Major growth predicted in most usage areas, particularly: Space, Medical, Semiconductor and Fibre Optics
Inert
Doesn't react with other elements and non-flammable unlike hydrogen
Non-toxic
Can be used in many applications without posing health or wellness risks
Lighter than air
Ability to lift or float. Atmospheric molecules escape to space
Boiling point -269°C
Liquid at ultra cool temperatures enables superconductivity
High Thermal Conductivity
Removes heat in space applications and electronics manufacturing
Helium Usage by
Industry
4% 4%
5%19%
5%
7%
15%
10%
15%15%
Forecast helium consumption by industry
2021 - 2030E (bcf/y)
9 | |||||||||
8 | |||||||||
7 | |||||||||
6 | |||||||||
5 | |||||||||
4 | |||||||||
3 | |||||||||
2 | |||||||||
1 | |||||||||
0 | |||||||||
2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
Small molecular size | MRI/NMR | Lifting |
Can be used to find the smallest | ||
Welding/Cutting | Fibre Optics | |
of leaks | ||
Diving | Other | |
Laboratory/Space | Semiconductors |
Leak Detection | Military & Space |
Source: H&P Equity Research / Akap Energy estimates Feb 2022
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Grand Gulf Energy Limited published this content on 28 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 June 2022 03:46:08 UTC.
