Grand Gulf Energy Ltd (ASX: GGE) ('Grand Gulf' or the 'Company') is pleased to advise it has received firm commitments for a placement raising A$3.2 million before costs ('Placement').

The Placement was well supported by a number of new and existing professional and sophisticated investors and provides Grand Gulf with a strong cash balance for continued advancement of the Jesse discovery. The Company continues to progress a series of high-graded opportunities at the Red Helium project including:

Jesse-3 new-drill planned for Q4 2023 targeting a structural high on seismic and proximal to the historic Redd-1 with proven gas/reservoir. Jesse-1A completion and testing programme planned to enable future production tie-in for a modest cost. Ongoing evaluation of stimulation/remediation and full flow-testing options for Jesse-2. Evaluation of a 3D seismic programme at the Red Helium project to accelerate a full-field Jesse development which could exceed 20 wells based on the giant Doe Canyon helium field analogue sharing the same geology 15 miles to the east.

Managing Director Dane Lance commented: 'Planning and preparations are on-track for Jesse-3, targeting a seismic high with proven gas in the proximal Redd-1 well, and the low-cost Jesse-1A completion, providing multiple near-term paths to first production. The inclusion of the independent McCracken sandstone secondary target, which produces helium both north and south of the Jesse discovery, provides exciting upside for a modest cost.

With our first two exploration and appraisal wells both flowing helium to surface and proving helium is pervasive across the Jesse discovery at a commercial grade, we look forward to being back in the field in what could be a potentially transformative fourth quarter for the Company and our shareholders. A binding offtake agreement and an existing pipeline connected to the Lisbon helium plant provide the potential to quickly bring helium from a commercial well to market with minimal time and capex positioning Grand Gulf well to capitalise on the ongoing global helium shortage when the world's largest helium consumer needs it most.'

Placement details

The Placement to professional and sophisticated investors is to be conducted via 2 tranches. A total of 400,000,000 new shares ('New Shares') are to be placed at an issue price of $0.008 per Share along with attaching Options to Placement investors on a 1 for every 4 basis. 191,539,030 New Shares will be issued under Tranche 1 at an issue price of $0.008 per share. The issue of the Tranche 1 New Shares will not be subject to Shareholder approval and will be made within the Company's existing placement capacity under ASX Listing Rules 7.1 (149,014,327 New Shares) and listing rule 7.1A (42,524,704 New shares). Settlement is scheduled to occur on Thursday, 31 August 2023. 208,460,970 New Shares will be issued under Tranche 2, subject to Shareholder approval at an extraordinary general meeting ('EGM') at first availability subject to ASX Listing Rule and administrative requirements. Further details in respect of the Meeting will be circulated to Shareholders in due course. Subject to Shareholder approval being obtained, in connection with the Placement, the Company will issue a total of 220,000,000 unlisted options, exercisable at 2.5 cents each on or before 3 years of the date of issue ('Options'), comprising: a) 100,000,000 free-attaching Options to Placement investors on a 1 for 4 basis; b) 20,000,000 lead manager Options and c) 100,000,000 broker Options on a 1 for 4 New Share basis. CPS Capital Group Pty Ltd is the lead manager, broker and corporate advisor ('Lead Manager') to the Placement. In addition to the Options set out above, a management fee of 2% and a placement fee of 4% of the gross proceeds raised under the Placement are payable to the Lead Manager.

Contact:

Email: info@grandgulfenergy.com

Forward Looking Statements

This release may contain forward-looking statements. These statements relate to the Company's expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like 'anticipate', 'believe', 'intend', 'estimate', 'expect', 'may', 'plan', 'project', 'will', 'should', 'seek' and similar words or expressions containing same. These forward-looking statements reflect the Company's views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with the discovery and development of oil, natural gas and helium reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward-looking statements attributable to GGE, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise

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