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- Grand Gulf Energy (GGE) secures a helium offtake agreement with Paradox Resources after signing a gas sales and processing agreement
- Paradox owns the Lisbon helium processing plant near Grand Gulf’s Red Helium project in the US state of Utah
- The agreement provides a path to monetisation of the maiden pure-play helium well, Jesse#1, which is scheduled to spud next month
- Helium prices have risen on the back of US supply disruptions, Russian sanctions and increased demand, with Lisbon currently selling helium for up to US$605 (A$841) per thousand cubic feet
- Grand Gulf shares are up 9.38 per cent and trading at 3.5 cents
Grand Gulf Energy (GGE) has secured a helium offtake agreement with Paradox Resources, after signing a gas sales and processing agreement.
Paradox owns the Lisbon helium processing plant, which is about 35km north of Grand Gulf’s Red Helium project in the US state of Utah.
The agreement provides a path to monetisation of the maiden pure-play helium well, Jesse#1, which is scheduled to spud next month.
Grand Gulf said the agreement provides external validation for Red Helium and initiates an important relationship with a proven helium processor and seller.
The Lisbon plant includes a liquefaction train capable of generating 99.9995 per cent purity helium suitable for the lucrative and premium-pricing semi-conductor, defence and space industries.
The facility is one of eight helium liquefiers in the US representing 7 per cent of North American helium liquefaction capacity.
Helium prices have risen recently due to major supply issues in the US, a fire at the giant Russian Amur gas plant, the Russian invasion of Ukraine and increased purity demand from the semiconductor and space sectors.
Paradox has confirmed recent contracts for the supply of helium have reached US$605 (A$841) per thousand cubic feet for purified gaseous helium.
“We are excited to partner with Paradox Resources, a major player in the North American premium helium market with advanced processing capability, and look forward to exploring future opportunities together,” Grand Gulf Managing Director Dane Lance said.
“The offtake agreement is further validation of the technical merit of the pureplay Red Helium project.”
The Red Helium project is held by Grand Gulf’s majority-owned incorporated joint venture company Valence Resources.
On the market, Grand Gulf was up 9.38 per cent and trading at 3.5 cents at 1:23 pm AEDT.
