A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Kazem Jalali, Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran to the Russian Federation, took place today.

The parties discussed relevant issues pertaining to their energy cooperation.

Background

In July 2022, Gazprom and National Iranian Oil Company signed the Memorandum of Understanding for strategic cooperation. The document envisages the analysis of cooperation prospects, inter alia, in the following areas: development of Iranian gas and oil fields, performance of swap transactions with natural gas and petroleum products, implementation of large-scale an

Jesse Discovery

The forthcoming drilling of the Jesse-2 well follows the highly encouraging Jesse discovery (Jesse1A well) which included a >200 foot logged gross gas column (with 101 feet of independently audited net pay) and exceptional helium concentrations of up to 1% returned to surface, exceeding pre-drill expectation4. The Jesse-1A well also encountered a productive and strongly pressured reservoir at 2,465 psi

Jesse-2 Drilling Program

Jesse-2 will exclusively target the gas pay zone(s) to minimize the risk of water production, with the planned total well depth terminating at least 50 feet above the identified gas/water contact at Jesse-1A. The drilling program incorporates managed pressure drilling through the primary Leadville formation minimising formation damage. The program allows enhanced mud-gas returns and realtime monitoring of reservoir gas flow and gas compositions using mass spectrometry. On identification of significant helium inflow, a bottoms-up flow test will be conducted to characterise the reservoir

In the event of a successful well, the GSPA provides a path to monetization of the Company's second pure-play helium well, Jesse-2. The GPSA expansion continues a relationship with a proven helium refiner and seller with deep helium processing and marketing experience. The key terms include an 80/20 industry standard revenue split in favour of the producer (GGE) as well as standard tariffs for gathering, compression and processing. The GSPA expansion represents recognition from Paradox of the significant potential of the Red Helium Project and the technical merits of the potentially company-making Jesse-2 well. Both Grand Gulf and Paradox are participating in ongoing discussions to identify further strategic business opportunities framed by a Strategic Alliance7, which includes GSPA expansion and further corporate synergies.

Paradox owns over 100,000 net acres and operates over 150 wells in the Paradox Basin in the Four Corners Region of Utah, Colorado, New Mexico and Arizona. Paradox is operator of 570 miles of operated gas gathering lines (220 miles of which is wholly owned) with four compression stations that feed directly to the Lisbon Valley Gas Plant. The advanced Lisbon Valley Gas Plant is comprised of a 60 million cubic feet per day (mmcfd) treating plant with a 45 mmcfd cryogenic plant capable of liquefaction of 0.5 mmcfd of high purity 99.9995% (5 1/2 Nines) helium, that attracts premium pricing for advanced applications such as semiconductor, medical, research, space and defense industries. The plant has capacity for another 0.6 mmcfd of purified 99.989% gaseous helium currently sold to multiple suppliers and direct to downstream retail consumers via Paradox's logistics arm comprising precisely engineered specialist tube trailers. The Lisbon Plant is also currently sequestering 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. The recent Inflation Reduction Act increased the value of carbon dioxide sequestered to $85 per metric tonne, making it a potential material revenue stream for the Red Helium Project.

Managing Director Dane Lance Commented: 'With the highly encouraging results from Jesse-1A, including a helium grade of 1% greatly exceeding pre-drill expectation, the Company is excited to be back in the field for Jesse-2. The Jesse-2 well engineering has incorporated the lessons learned from the evaluation program on the maiden helium exploration well to minimise risk of water production by staying high in the column. Coupled with the managed pressure drilling program to maximise well deliverability, which also allows preliminary flow evaluation whilst drilling, the drilling of Jesse-2 will be an exciting period for the Company. The compelling fundamental commercial pillars of the Red Helium Project remain unchanged with the ability to quickly monetise a commercial well to generate near term free cash flow with minimal time and cost.'

About Grand Gulf Energy

Grand Gulf Energy Ltd (ASX: GGE) is an independent exploration and production company, headquartered in Australia, with operations and exploration in North America. The Red Helium project is a pure-play helium exploration project, located in the Paradox Basin, Utah, in the prolific Four Corners region.

Competent Person's Statement

The information in this report is based on information compiled or reviewed by Mr Keith Martens, Technical Director of Grand Gulf. Mr Martens is a qualified oil and gas geologist/geophysicist with over 45 years of Australian, North American, and other international executive oil and gas experience in both onshore and offshore environments. He has extensive experience of oil and gas exploration, appraisal, strategy development and reserve/resource estimation. Mr Martens has a BSc. (Dual Major) in geology and geophysics from The University of British Columbia, Vancouver, Canada.

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.

Contact:

Tel: +61 8 9226 2209

Web: www.grandgulfenergy.com

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