Helium Offtake Agreement Secured • Gas Sales & Processing...

Helium Offtake Agreement Secured
• Gas Sales & Processing Agreement (GSPA, Offtake) executed with Green Natural Gas
LLC (GNG), new owners of the advanced Lisbon Helium Processing Plant located 20
miles north of the Red Helium Project
• GSPA provides the opportunity to monetize a successful well, providing near-term
cashflow with minimal time and CAPEX
• The Lisbon facility includes a liquefaction train capable of generating 99.9995%
purity helium suitable for the lucrative and premium-pricing semi-conductor, defense
and space industries
• The key terms of the GSPA include an industry standard revenue split in favour of the
producer (GGE) as well as standard tariffs for gathering and processing, including
access to helium liquefaction and associated premium grade helium markets and
prices
• Lisbon Plant is also currently processing carbon dioxide and is well advanced in the
permitting process to qualify for carbon capture tax credits under Section 45Q
(revenue) of the US tax code
Grand Gulf Energy Ltd (ASX:GGE) (“Grand Gulf” or the “Company” is pleased to advise of the
execution of a Gas Sales & Processing Agreement (“GSPA”, “Offtake” with Green Natural Gas LLC
(“GNG”, new owners of the advanced Lisbon Helium Processing Plant (“Lisbon”, “Lisbon Plant”
located 20 miles north, and connected by pipeline, to the Red Helium project.
In the event of a successful commercial gas flow, the GSPA facilitates near-immediate
monetization of the Company’s Red Helium project with minimal CAPEX. The GSPA continues a
relationship with a proven helium refining facility with extensive helium processing and marketing
experience. The key terms include an industry standard revenue split in favour of the producer
(GGE) as well as standard tariffs for gathering, compression and processing, including access to
the helium liquefaction train and associated premium grade helium markets and prices.
The GSPA represents recognition from GNG of the significant potential of the Red Helium Project
and the technical merits of the proposed near term development activities including the Jesse-3
and Earp-1 up-dip twins of historical wells with proven gas and reservoir.