Grand Gulf and Sage Potash to partner on dual-commodity exploration in Utah’s Paradox Basin

In what to some might seem an unlikely mix, Grand Gulf Energy (ASX: GGE) has signed a memorandum of understanding (MoU) with TSXV-listed Sage Potash to hunt for helium and potash in Utah.

The MoU will see the companies collaborate on exploration activities within an area of mutual interest at the Red Helium project.

Under the MoU, the parties have agreed to share the costs of a proposed 3D seismic survey targeting helium and potash, as well as the possible drilling of a well designed to access both helium and potash.

Significant gas reductions

Grand Gulf director Fergus Kiley said the MoU had the potential to significantly reduce the cost of future exploration and development activities at Red Helium.

“This strategic agreement leverages the geographic and operational synergies between the Red Helium and Sage Plain projects, both located in close proximity within the Paradox Basin [in] Utah,” Mr Kiley said.

Grand Gulf is seeking to unlock value from Red Helium, while at the same time pursuing its offshore Namibia oil and gas block interests.

Jesse-1A well re-entry

Grand Gulf’s previous Jesse-1A well drilled and tested the maiden Red Helium project discovery in June 2022, encountering a gas column greater than 200 feet, with 101ft of net pay and 1% helium.

Notably, the well demonstrated the presence of helium and Grand Gulf considers the acquisition of the 3D seismic survey crucial in de-risking future drill locations and establishing commercial helium flows.

In December 2023, Grand Gulf contractor Walsh Engineering re-entered the Jesse-1A well and attempted to isolate the lower Leadville formation with a cement plug.

Jesse-1A flowed at 1 million cubic feet per day of raw gas at high helium concentrations consistent with the 1% helium down-hole sample, with an initial petrophysical evaluation suggesting the entire well-bore may be gas-saturated.