Grand Gulf Energy Limited · ASX:GGE
Grand Gulf Energy — Investor Presentation (April 2022)
17 slides from Grand Gulf Energy's investor presentation, Apr 26, 2022
Slide 1: Red Helium Project Update
Red Helium Project Update April 2022
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: Red Helium Project
Red Helium Project Strategic Pivot to Pure-play Helium Exploration Project Prolific Location De-Risked Geology Large Resource • Helium-Prolific Four Corners area • Known Geology, 315km quality 2D seismic • Red Structural Closure • Drill Friendly Utah • Vintage wells within AMI proved: • 4 - 5 times
Slide 4: Corporate Snapshot
Corporate Snapshot US-Focused Helium Explorer with positive Energy production cashflow Financial Information Red Helium: Earning 85% of Valence1 Earning Max Cost $US ASX Trading Symbol GGE Current Interest 55% Total Shares 1,546 million Drilling first well by Oct ’22 15% $1.5M Market Cap @ 4.7c A$72
Slide 5: Helium: Critical Path Irreplaceable Technological Enabler
Helium: Critical Path Irreplaceable Technological Enabler Major growth predicted in most usage areas, particularly: Space, Medical, Semiconductor and Fibre Optics Helium Usage by Forecast helium consumption by industry Inert Industry 2021 - 2030E (bcf/y) Doesn’t react with other elements and 9 non-f
Slide 6: Helium Supply and Demand Factors
Helium Supply and Demand Factors Key Observations Helium Production by Supply Source US annual helium Supply 2011-20 • Historic Supply predominantly oil 8 5.0 7 and gas / LNG by-product, and 6 4.0 BLM reserve. 5 3.0 bcf/yr bcf/y 4 • Recently increasing helium 3 2.0 supply from primary projects. 2 1.
Slide 7: Helium Supply Demand Balance
Helium Supply Demand Balance Helium Supply Shortage: extending into 2023 • Devastating fire at Amur facility impacts Estimated supply demand balance for helium 10-20% of potential global helium 8 capacity into 2023, exacerbated by increasing geopolitical tensions. 7 • The Russian shaded area include
Slide 8: Helium Pricing
Helium Pricing US$/mcf • Helium pricing is localised, 700 complex, and opaque, however sustained supply demand deficit 600 ~$605/mcf has led to sustained wholesale prices exceeding US$300/mcf 500 since 2020. FY19 BLM average auction price was US$280/mcf. 400 • Recent supply side pressures have $/mcf
Slide 9: Four Corners Area: New Helium Production
Four Corners Area: New Helium Production Prolific Proven Producing Helium Region • Wholesale global helium industry is a multi-billion dollar market1 • Approximate annual global helium market: • ~6 bcf/yr1 • ~16,500 mcf/d • Red Helium Project • Large Prospective Resource • Gross P50 unrisked 10.9 bc
Slide 10: Red Helium Project – High Quality Dataset
Red Helium Project – High Quality Dataset High Quality 2D Seismic Coverage and Well Control • Dominant lease position • >29,000 acres (private leases/Utah state leases) leased in drill-friendly Utah • Lease holdings focused on prime prospective locations • 315 km’s of high quality seismic data acqui
Slide 11: Multiple Independent Prospects
Multiple Independent Prospects De-risks greater Red Helium Project1 • Three drill locations on mature prospects independent to the Jesse prospect identified. UT CO • Earp location drill ready with permitting advanced. • Prospects are considered independent due to structure Doe Canyon Helium Field Je
Slide 12: De-Risked Geology, Huge Resource
De-Risked Geology, Huge Resource Jesse#1A spudding late April 1 Vintage wells within AMI proved:2 A B • Trap / Seal A • Reservoir Presence • Gas Charge • Helium system within AMI Gas – non-flammable / no He analysis Gas – helium confirmed Gas – helium field Jesse#1A Key Objectives: • Leadville forma
Slide 13: Helium Offtake Agreement Secured
Helium Offtake Agreement Secured Gas Sales & Processing Agreement (GSPA) executed with Paradox Resources LLC (March 2022)1 GSPA: Jesse#1A to Lisbon in success case A • Validates technical merit of Greater Red Helium project. • Agrees such industry standard commercial terms such as 80/20 revenue spli
Slide 14: Strategic Alliance with Helium Offtake Partner
Strategic Alliance with Helium Offtake Partner Exploit Significant Synergies Between Red Helium project and Paradox Resources Assets Pursue several advanced opportunities to optimize and prioritize near-term exposure to the burgeoning helium market with potential mutually commercially advantageous r
Slide 15: Strong Management & Board
Strong Management & Board Leadership Dane Lance Keith Martens Lloyd Flint Craig Burton Managing Director Technical Director CFO / Company Secretary Chairman • >18 years’ experience across E&P Lifecycle, • >40 years’ experience as an oil finder • >25 years’ experience in the corporate and • Experienc
Slide 16: Contact Us
Contact Us Email info@grandgulfenergy.com Phone +61 8 9226 2209 Address Grand Gulf Energy Limited Suite 4, 246-250 Railway Parade West Leederville, WA 6007 Fax +61 8 9226 2210
Slide 17: Glossary
Glossary Abbreviation Description He helium US BLM US Bureau of Land Management UDGOM Utah Division of Gas Oil and Mining SITLA Utah School and Institutional Trust Lands Administration U Prospective Resources – 1U/2U/3U – P90/P50/P10 - low/most likely/high cf Cubic Foot of Gas scf Standard Cubic Foo
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