Grand Gulf Energy Ltd (ASX: GGE) ('Grand Gulf' or the 'Company') is pleased to advise that Sproule International ('Sproule') has performed independent due diligence on the methodology used to generate Prospective Resource estimates by Grand Gulf Energy for the Devonian McCracken sandstone at the Red Helium Project located in the Paradox Basin, Utah USA.

Sproule is an independent resources and reserves certification specialist with extensive experience in helium and the Paradox Basin. Sproule has confirmed that Grand Gulf's methodology meets industry (PRMS) best practices and the parameters that the Company has used for its range of values in its probabilistic volumetric evaluations meet all industry best practices and each of the parameters for area, thickness, porosity, saturation, formation volume factor, helium concentration, and recovery factor can be documented from data in the immediate area or adjacent analogues.

Managing Director Dane Lance Commented: 'The Devonian McCracken sandstone is a proven producing helium formation in the region, and the P50 prospective resource booking of almost 2 BCF at a gross level and 5 BCF at a field level represents a highly prospective bonus formation with significant upside that Grand Gulf will target at the Red Helium Project. Jesse-3 is located optimally to evaluate the McCracken Sandstone formation at a modest additional cost, whilst targeting a seismically defined structural high near to well control with good reservoir development further de-risking the primary Leadville target which has a 10.9 BCF gross P50 prospective resource. Similarly, Jesse-1A is within the gas column in the McCracken as defined by the Redd-1 well logs with the proposed future re-completion including an evaluation and test of the McCracken potential. In both cases, the McCracken represents a cost effective non-binary secondary target with exciting upside for the greater Red Helium project, which has the potential to near immediately monetise a commercial well with minimal time and capex.'

Devonian McCracken Sandstone Formation The Devonian McCracken sandstone is a proven producing helium formation in the region. Twenty miles to the north, the Lisbon field has produces from the McCracken with an average of 1% helium concentration. Also in the Four Corners region, in the San Juan basin, New Mexico, the Tocito Dome field produces at 7 to 8% helium and is under active development2. Helium concentration is dependent on regional source, migration pathways, trap timing and integrity. The 1% helium concentration measured at Jesse-1A3 in the Leadville formation was used as the P50 input to the resource estimation, with proximity of the reservoir to the helium source providing potential further upside in helium concentration

The McCracken play is independent of the Leadville formation and overall trap, seal, reservoir source and migration risk is low as the Redd-1 well has already been drilled on the Jesse structure with logged gas sands and indications of non-hydrocarbon gas that historically from other wells in the area will contain >1% helium by volume. Three historic wells within the project area in the horstal region to the south have intersected gas on petrophysical logs in the McCracken and tested non-flammable gas (helium) and gas cut mud (Texas Coal-1, Crittenden Phillips-1 and Gulf Unit-2)

esse-3: Structural High on Existing Seismic, Reservoir Definition through Well Control The selected Jesse-3 location is proximal (1,300 feet) to the historic Redd-1 well positioned on a seismic high with the potential to be 70 feet high to Jesse-1A4. Jesse-3 is optimally located structurally to evaluate both the primary Leadville target and the McCracken as a secondary target. Targeting a structural high provides the potential for greater stand-off to the gas/water contact, reducing risk of water ingress, and potential for greater net reservoir in the gas column. The Redd-1 well intersected over 26 feet of net pay over a 90 foot gross gas zone in the McCracken sandstone as indicated by petrophysical logs. Redd-1 logs in the primary Leadville target indicate several gas filled zones across at least 140 gross feet of porous dolomitic reservoir including a 50 foot zone with evidence of strong hydrothermal dolomitization and secondary vugular porosity. Proximal well control de-risks reservoir development in both zones.

Jesse-1A Re-completion The Redd-1 well lowest known gas (LKG) was used in the resource estimate to constrain the P90 case. Jesse-1A is located within the lowest known gas contour observed at the Redd-1. A future case and perforate re-completion at Jesse-1A is planned to include an evaluation of the potential of the McCracken sandstone.

Contact:

Email: info@grandgulfenergy.com

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