Each one in plain English, with the numbers worked through for a shareholder.
24 Mar 2023capital raising announcement● NeutralMajor
Placement of 113.6m shares at 2.2c raises A$2.5m, with 1-for-2 attaching options at 5c for 3 years plus 28.4m options to lead managers Euroz Hartleys and CPS. Funds are for working capital and long-lead production equipment, if Jesse-2 succeeds. Jesse-2 is drilling the intermediate section.
What it means for a shareholder
114m new shares at A$0.022 to raise about A$2.5m. That's 6.8% dilution: every existing holder's slice gets 6.8% smaller. If you held A$1,000 of shares (45,455 at the issue price), your slice goes from 0.00294% to 0.00274% of the company. To keep it you'd need 3,339 more shares - about A$73 at the issue price.
Jesse-2 reached 3,135 ft, the end of the surface hole section, and is running 9.625-inch casing. Drilling is described as on schedule, with about a month still expected to the 8,150 ft target depth.
Jesse-2 helium well spudded on 14 March 2023, two days after the 12 March target. Aim is 8,150 ft in the Leadville Dolomite, about a month of drilling. This is the second well under the Valence earn-in, following the Jesse-1A discovery.
Aztec 1099 rig mobilised on 9 March 2023 for Jesse-2. Long lead items bought, site complete and surface conductor installed, with spud still targeted for 12 March. No new results.
Half-year to 31 December 2022 loss was A$1.02m, versus A$9.77m a year earlier, when a large Valence impairment was booked. Recaps the Jesse-1A discovery, 70% Valence interest and Jesse-2 preparations. Directors call the group in a sound financial position.
Jesse-2 spud set for 12 March 2023. Site construction is complete, the conductor rig mobilised on 6 March, and the drill rig is to move in later that week after an 8 March pre-spud meeting.
Jesse-2 spud now guided for mid-March 2023, with long lead items bought, rig contracted and site over 50% built. This firms up the Q1 timing after the earlier slip from late Q4 2022.
December 2022 quarter: mostly recaps Jesse-1A results, the Jesse-2 permit, offtake extension, rig contract and new drilling superintendent. Desiree grossed 4,941 bo (54 bo/d), 1,982 bo net to Grand Gulf. Jesse-2 still due in Q1 2023.
Aztec Well Servicing contracted to drill Jesse-2; it drilled Jesse-1A within schedule and budget. Spud remains on schedule for the current quarter. Contract value is not disclosed.
Todd Gentles, with over 40 years' drilling experience including 15 years at the neighbouring Doe Canyon field, appointed Drilling Superintendent for Red Helium. Previous superintendent Doug Frederick moves to a consulting role.
Well pad construction began at Jesse-2, expected to take about three weeks. Spud is still said to be on schedule for the current quarter. No new results.
The Paradox gas sales and processing agreement, first signed March 2022, now covers Jesse-2. Terms stay at an 80/20 revenue split favouring Grand Gulf, plus standard tariffs. It gives a route to sales only if the well succeeds.
Utah regulator approved the permit to drill Jesse-2, 1.5 miles from the Jesse-1A discovery. Spud is targeted for Q1 2023, in line with the earlier late Q4/early Q1 guidance. It will stay above the gas/water contact, using managed pressure drilling.
November presentation repeats the Jesse story. It shows net cash of A$7.1m at 30 September 2022 and 1,546m shares, with US$3.0m of earn-in payments remaining. Jesse-2 timing now late Q4 2022 or early Q1 2023, a slight slip.
Jesse#2 location finalised 1.5 miles south-east of Jesse#1A, for drilling in Q4 2022. It will stop at least 50 feet above the gas/water contact to limit water ingress. A third well is planned for early 2023.
September 2022 quarter: mostly repeats the Jesse#1A results (helium up to 1%, 2,465 psi, water influx limiting flow). Desiree grossed 5,059 bo, 2,003 bo net to GGE. Second well still planned Q4 2022.
Downhole gas samples from Jesse#1A returned 0.89-0.96% helium, above the 0.8% announced in September and the earlier 0.44-0.65%. The company calls them the most representative of reservoir gas. Second well still on schedule for Q4 2022.
Annual report to 30 June 2022: loss of A$18.7m (prior year A$115k), in a year the company pivoted to pure-play helium via Red Helium (now 70%). Notes Jesse discovery and that flow testing was suspended by water influx.
Appendix 4G governance checklist signed by company secretary Lloyd Flint, pointing to the governance statement on the website. Administrative; no new information.
Corporate governance statement for the year. Says the board has three members with no women and currently no employees. Administrative disclosure with no operational or financial news.
Jesse#1A flow test: helium grade averaged 0.8% (earlier 0.44-0.65%) and reservoir pressure 2,465 psi. Sproule says discovered status allows reclassifying prospective to contingent resource, but water ingress stopped stable gas flow, so no flow rate was measured. Second well planned Q4 2022.
ASX notice that the Grand Gulf trading suspension will be lifted once the Jesse 1A test results announcement is released. Administrative only; no new information.
Grand Gulf requested a voluntary trading suspension on 21 September 2022, pending an announcement on Jesse 1A test results. It runs until the announcement or normal trading on 23 September, whichever is earlier.
Flow testing of Jesse#1A began this week after downhole data runs including a borehole optical log; initial results are expected as early as next week. Earlier helium (up to 0.65%) and 2,280 psi pressure are repeated. Second well still planned for Q4 2022.
The work-over rig reached Jesse#1A on 29 August and is rigging up to flow test several zones. Flow rates and helium concentration are still pending. The next well remains planned for Q4 2022.
