Grand Gulf Energy (ASX:GGE) has spud its first helium well onsite its US acreage in Utah as the ASX-lister commences its search for naturally occurring deposits of helium gas.
The well, named Jesse-1, is the company’s maiden pure-play helium well. An Aztec Drilling 980 rig is currently onsite progressing the asset to a total planned depth of 8,500 feet in a geological formation known as the Leadville Dolomite Formation.
The company is pivoting towards helium extraction and production as a global shortage of the gas continues to loom over supply chains.
Helium, well known for its inclusion in floating party balloons, is also a critical component in the manufacturing of microchips and other industrial products.
Last week, Grand Gulf Energy announced its helium exploration well campaign was fully funded with a recent share placement pulling in $3m more than expected to a total of $11m.
It also announced that the engineering plan for Jesse-1 had been upgraded so as to expands its tubing parameters to allow for a flow rate of helium gas some three times greater than that allowed for in original schematics.
The company’s Utah project is dubbed the Red Helium Project.
As the company confirms its earlier announcements to spud the well in late April, the share price for Grand Gulf Energy remains mostly unchanged after a day of trade on the back of the maiden well spud.
However, it's worth noting one million shares were bought at 1500AEST.
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