Grand Gulf Energy Limited · ASX:GGE
Grand Gulf Energy — Merger or Acquisition (September 2021)
24 slides from Grand Gulf Energy's merger presentation, September 2021
Slide 1: Red Helium Project Acquisition
Red Helium Project Acquisition September 2021
Slide 2: Corporate Disclaimer
Corporate Disclaimer This presentation does not constitute investment advice. Neither this presentation nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in Grand Gulf (the “Company”) - in any jurisdicti
Slide 3: Transaction Highlights
Transaction Highlights Grand Gulf (“GGE”) to acquire Kessel Resources Pty Ltd (“Kessel”), a US helium explorer • Exposure to the burgeoning helium industry in the helium-prolific Four Corners area in the US – Drill ready and proximal to Strategy dedicated infrastructure • Acquisition of 100% of Kess
Slide 4: Corporate Snapshot
Corporate Snapshot Grand Gulf will be a US-Focused Helium Explorer with positive Oil and Gas cashflow Financial Information Shareholder Group ASX Trading Symbol GGE Shares Outstanding 383 million Capital Raising 350 million 30% 32% GGE Existing Consideration Shares 450 million Globally Kessel Total
Slide 5: Strong Management & Board
Strong Management & Board Leadership Keith Martens Craig Burton Mark Freeman Chief Executive Officer - Director Chairman Executive Director - Australia • >40 years’ experience as an oil finder • Experienced active investor in emerging oil and gas companies • >25 years oil and gas development and cor
Slide 6: Listed Helium Companies
Listed Helium Companies Company Market Project Location Market Cap (USD) Comments Desert Mountain Energy TSX-V • Holbrook Basin, Az (Four $254M • Proximal to Paradox Basin (Red Project) (DME) Corners area) • 85,000ac, 2 discovery wells • 24mmcfgpd @ 7% He and 1.25mmcfgpd @ 3.5% He PetroSun (PSUD) OT
Slide 7: Helium Properties
Helium Properties Inert Doesn’t react with other elements and doesn’t explode like hydrogen Non-toxic Can be used in many applications without posing health or wellness risks Lighter than air HE Ability to lift or float Melting point -272°C Liquid at ultra cool temperatures enables superconductivity
Slide 8: Transaction Rationale
Transaction Rationale US$ Helium Pricing The price of helium has seen a rapid expansion in both spot public auctions and longer term negotiated private contracts. During the last period of oversupply (2013–16), which peaked in 2013–14, BLM conservation (private sector) prices were $80–90/mcf for cru
Slide 9: Helium Market Size
Helium Market Size Global demand for helium reached 6.2billion cubic feet (Bcf) 1/ year in 2019. Given the 2018 cessation on U.S. Bureau of Land Management (BLM) helium sales, the global helium market is expected to experience a prolonged deficit. Manufacturing Helium’s inert nature makes it essenti
Slide 10: Helium Future Demand
Helium Future Demand Forecast helium consumption by industry 2021-2030, BCF/Y • Major growth potential for helium in space travel, near-space travel in balloons, semiconductors and other electronics applications. The future growth of helium is expected to be driven by demand from electronics manufac
Slide 11: Helium Shortage
Helium Shortage Supply Shortage – Rising Prices Chinese monthly imports by exporter, 2019-2020, mmcf • There is virtually no domestic helium production in China but demand for helium is estimated at ~1bcf/y and is growing sharply. China is the most important growth market for helium. • As with other
Slide 12: Dominant Lease Position in the Four Corners Area
Dominant Lease Position in the Four Corners Area ‘The Saudi Arabia of Helium’ • Successfully leased over 23,600 ac to date in one of the world’s best addresses for helium • Ongoing leasing, targeting 35,000 ac • Permitting-friendly Utah currently with no federal govt (BLM) leases • Royalty of 20% •
Slide 13: Four Corners Area Helium Activity
Four Corners Area Helium Activity Red Helium Project Tacitus, LLC 1 Daily Helium • ~24K acres leased. Greater than one hundred 2D seismic • ~100,000 acres leased in Central anomalies. Production as of Ut (Temple Springs), no wells 8 July 2021 • Economic Horizontal McCracken Kinder Morgan Doe Canyon
Slide 14: Outstanding Infrastructure Position
Outstanding Infrastructure Position • 2 of the 7 helium purification plants in the U.S. are within 20 miles • Lisbon Plant purifies to 99.999% He, “five nines” • Helium offtake opportunities in the immediate area – discussions underway • On-site gas stream separation and trucking also an option • Se
Slide 15: Red Project – Seismic Lines
Red Project – Seismic Lines • 190 miles of 2D Seismic coverage providing excellent data, particularly below the salt seal • Geologic analogs with historic He concentrations • Drill locations identified • Analog Doe Canyon and McElmo Fields – same reservoir/same trap/same source rock Grand Gulf Energ
Slide 16: Proven Trap and Seal
Proven Trap and Seal Stratigraphic column from Whidden et al. (2013) Grand Gulf Energy Limited | Red Helium Acquisition 16
Slide 17: Doe Canyon Analogue Field and Well Control
Doe Canyon Analogue Field and Well Control Leadville DST GCM Red Structural Closure Leadville DST GCM No analysis 10 miles by 18 miles = ~115,000 acres No analysis Leadville subsea structure Doe Canyon Helium EUR: 3-5 BCF Leadville 3 DSTs rate? 1964 highest well Leadville not tested Leadville DST no
Slide 18: Red Helium Project − Trap
Red Helium Project − Trap Key Dip 2D Seismic Line Post Salt Low Deformation Oil Potential Salt Desmoinesian • Good quality seismic even below the salt – overall trap is clearly defined Shales and Silts Leadville Ls-Dolomite Precambrian Granite McCracken SS Cambrian silts and shales Grand Gulf Energy
Slide 19: Red Helium Prospect – 4 Corners
Red Helium Prospect – 4 Corners Sub-Salt Well Control and Fields Lisbon and Lightning Draw Cum: ~ 55 MMBO + ~ 250 BCF • Doe Canyon is regarded as an Helium Best Well: 1.4% analogue field – currently produces an average well flow rate of roughly Doe Canyon 18mmcfpd of raw gas at an average Cum: ~485
Slide 20: Red Helium Prospect
Red Helium Prospect Red Area well had high nitrogen suggesting the helium concentration is understated Lisbon Doe and Red McElmo Aneth Grand Gulf Energy Limited | Red Helium Acquisition 20
Slide 21: ESG – Carbon Sequestration Potential
ESG – Carbon Sequestration Potential GGE is in the process of reviewing the potential of the Red Helium Project qualifying under Section 45Q of the US tax code for carbon sequestration (re-injection) of the associated anticipated CO2 component of the raw gas stream. Key aspects of Section 45Q of the
Slide 22: Kessel Resources Earn In
Kessel Resources Earn In Earning 75% of Valence Resources Earning Max Cost US$ Completion of Leasing Payments 25% $1.3M (US$650k remaining) Drilling first well within 12 months of conclusion of leasing 25% $1.5M Drilling second well within 24 months of conclusion of leasing 12.5% $1.5M Drilling thir
Slide 23: Contact Us
Contact Us Phone +61 8 6102 4826 Address Grand Gulf Energy Limited Suite 4, 246-250 Railway Parade West Leederville, WA 6007 Fax +61 8 6500 3275
Slide 24: Glossary
Glossary Abbreviation Description Abbreviation Description WI Working Interest B Prefix – Billions C Contingent Resources – 1C/2C/3C – low/most likely/high MM Prefix - Millions NRI Net Revenue Interest (after royalty) M Prefix - Thousands Net Working Interest after Deduction of Royalty Interests /d
Grand Gulf Energy — Merger or Acquisition (September 2021) on 6ix