25 Aug 2022drilling progress report● Neutral
A work-over rig will mobilise to Jesse#1A on 29 August to flow test several zones for gas rate and helium concentration. The next helium well has moved from Q3/Q4 to Q4 2022. No new results.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
9 Aug 2022investor presentation● Neutral
August webinar slides repeat the Jesse discovery and Red Helium story. They show net cash of A$7.9m at 30 June 2022 and 1,546m shares, with US$3.0m of earn-in payments remaining for the 85% stake. A resource update is planned after flow test results.
5 Aug 2022other● Neutral
Invitation to a shareholder webinar with MD Dane Lance on 9 August 2022. No new information.
5 Aug 2022drilling progress report▼ Bad
Jesse#1A flow test has slipped again, to late August or early September, using packers to test several zones. Previous helium and pressure results are repeated. The next helium well is still planned for Q3/Q4 2022.
29 July 2022quarterly activities report● Neutral
June 2022 quarter: Jesse#1A discovery declared and Valence stake raised to 70%. Flow test is planned mid-August and a second well in Q3/Q4. Desiree grossed 5,016 bo (55 bo/d), 1,553 bo net to GGE. Mostly repeats known events; Desiree oil output is lower than the prior quarter.
20 July 2022farm in farm out completion▲ GoodMajor
Grand Gulf lifted its stake in Valence Resources, which operates the Red Helium project, from 55% to 70% after contributing the first US$1.5m for the first well. It can reach 85% by funding US$1.5m on each of two more wells. Work-over is on schedule for mid-August.
13 July 2022drilling progress report● Neutral
Jesse#1A will be re-entered in August with a production log, gas column isolation and flow test to establish a stable flow rate. This delays the earlier early to mid Q3 timing. Locations are being ranked for a second well in Q3/Q4 2022.
29 June 2022well test result▲ GoodMajor
Jesse#1A flow-back sampled 0.44-0.65% helium, with CO2 of 59-65% (below the 85% expected) and reservoir pressure of 2,280 psia. The company declares a helium discovery, but water ingress meant the well could not flow stably. The rig was released and a re-entry is planned for early to mid Q3.
23 June 2022drilling progress report● Neutral
Jesse#1A has been acid-stimulated and is unloading fluids before the 4.5 inch tubing is run for flow testing. The company says flow rates and helium analysis will decide whether it is a commercial discovery. No results yet.
17 June 2022security holder rights change● Neutral
Section 708A notice confirming completion of the April placement: 250m shares at 4.4c plus 13.5m consultant shares were issued earlier. Now 83.3m free 8c options, 20m lead manager options and incentive securities for MD Dane Lance (10m options at 7c) are issued after the 10 June approval.
17 June 2022drilling progress report● Neutral
The workover rig re-entered Jesse#1A and is acidising the formation. The 4.5 inch tubing will be run next, followed by several days of flow testing. No flow or helium concentration results yet.
17 June 2022other● Neutral
Registry top-20 holders and distribution schedule for the 103.3m new 8c options: 231 holders, with Evolution Capital the largest at 14m (13.5%). Supporting paperwork for the option quotation application; no new information.
17 June 2022admin correction● Neutral
Corrected distribution schedule fixing the option exercise price from $0.008 to $0.08. Dated 17 May 2022 in the text but listed 17 June. Administrative only.
14 June 2022drilling progress report▲ Good
A workover rig began mobilising on 14 June 2022 to acidise and flow test Jesse#1A, which logs suggest has a 203 ft gas column. A permit application was lodged for a second well in Q3 2022. Flow test results are still pending.
31 May 2022other● Neutral
Notice that 43,827,494 shares will be released from voluntary escrow on 15 June 2022. Administrative; adds to tradable supply.
30 May 2022other● Neutral
Notice that 47,333,693 shares will be released from voluntary escrow on 14 June 2022. Administrative; adds to tradable supply.
30 May 2022drilling result▲ GoodMajor
Jesse#1A reached total depth, with logs indicating a 203 ft gross gas column in dolomitised Leadville reservoir, similar to nearby Doe Canyon producers. Flow testing is the real test of discovery and a workover rig is about two weeks away.
20 May 2022drilling progress report▲ Good
Jesse#1A drilled through 1,700 ft of salt seal; 7 inch casing set at 8,067 ft. Mud gas helium reached 37 times background (386 ppm), a qualitative indicator only. The well is drilling structurally higher than expected.
12 May 2022drilling progress report▲ Good
Jesse#1A, drilled to 5,875 ft, detected helium up to 17 times background (124 ppm) above the main Leadville target. The company calls it a sign of a working helium system. It is an early qualitative indicator, not a flow result.
6 May 2022drilling progress report● Neutral
Jesse#1A has drilled the top hole to 3,095 ft with 9 5/8 inch casing cemented. It will continue to about 8,077 ft before testing the main helium target near 8,300 ft. No helium result yet.
5 May 2022other● Neutral
Administrative notice: registered office and principal place of business moved to Suite 1G, 56 Kings Park Road, West Perth. No operational or financial substance.
29 Apr 2022quarterly activities report● Neutral
March 2022 quarter: A$11m placement closed, Jesse#1A spudded 24 April, and oil from Desiree and Dugas & Leblanc #3 averaged 91 bo/d (3,546 bo net to GGE). Lloyd Flint is named CFO/Company Secretary. Largely repeats known events.
27 Apr 2022other● Neutral
Administrative notice: the company changed its telephone and fax numbers. No operational or financial substance.
26 Apr 2022investor presentation● Neutral
April 2022 Red Helium presentation repeats known facts: 55% of Valence earning 85%, 10.9 bcf gross P50 prospective resource, Paradox offtake, and A$11m placement funding at least two wells. Shows 1,546m shares and A$3.0m net cash at 31 Dec 2021. Nothing new.
26 Apr 2022drilling spud▲ GoodMajor
Jesse#1A, the maiden helium well at Red Helium, spudded on 24 April 2022 using Aztec rig 980. It is drilling to a planned 8,500 ft in the Leadville Dolomite, about a month. Resolves the spud thread; the result is still unknown.
20 Apr 2022capital raising announcement▲ GoodMajor
GGE raised A$11m via a placement of 250m shares at 4.4c, with one free option per three shares (83.3m options at 8c, 3 years, needing shareholder approval). Funds at least two wells. Well redesigned as Jesse#1A at about US$3.3m, spud late April.
What it means for a shareholder
250m new shares at A$0.044 to raise about A$11.0m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held A$1,000 of shares (22,727 at the issue price), your slice goes from 0.00177% to 0.00148% of the company. To keep it you'd need 4,428 more shares - about A$195 at the issue price.
Create a free account to see this worked out for your own holding.
13 Apr 2022director officer appointment● Neutral
Lloyd Flint, a chartered accountant with 25 years' experience, was appointed company secretary with immediate effect. Replaces Mark Freeman in that role (inference, following his resignation).
11 Apr 2022material agreement▲ Good
Valence signed a non-binding-style Strategic Alliance with Paradox, building on the March offtake deal. It covers restarting Paradox's liquefier with Red Helium gas, joint marketing and CO2 disposal options, with a US$75,000 joint study. 13.5m GGE shares go to a consultant.
8 Apr 2022director officer appointment● Neutral
Executive Director Mark Freeman's resignation from the board was accepted, effective 15 April 2022. No reason is given. He had also been Company Secretary.
6 Apr 2022other● Neutral
GGE shares began trading on the US OTCQB market as GRGUF on 5 April 2022, as a secondary quotation to the ASX listing. No shares were issued for it and no material extra compliance burden is stated.