Cedar Point 3D Executive Summary
Location: San Juan County, UT (9 Miles WSW of Dove Creek, CO
Highlights:
18 Sq mile 3D with over 30 prospective drilling locations
Jurassic to Cambrian objectives
Primary Objective: Helium/CO2 bearing Leadville Formation (Miss.)
4 BCF helium analog less than 20 miles away, along same strike-slip fault system
Possible 45Q tax credits for associated CO2 production
Industry friendly Utah
Project Summary:
Grand Gulf Energy, LTD (GGE) and Four Corners Helium, LLC (FCH) are soliciting 3rd party capital to accelerate the development of their ~125 square mile Red Helium project in SE Utah. Having established a helium system with distinct similarities to nearby helium analog Doe Canyon Field, GGE and FCH seek partners for a 4Q2024 proprietary 3D acquisition, followed by a potential 2025 drilling program. The 1500’ to 2000’ thick Akah Formation, composed of primarily salts and anhydrites, has created the perfect seal for underlying dolomitized Mississippian carbonates (Leadville formation), and Devonian sandstones (McCracken formation). A well-timed multi-Township paleo-ridge (Abajo Nose), allowed for an enormous fetch area for not only trapping sub-salt gases, but also creating hydrocarbon prospectivity in the Jurassic through Pennsylvanian rocks.
Pre-salt Resource:
Imaging the Cedar Point finger mesa will significantly reduce the risk for drilling three separate fault blocks associated with a dramatic east-west trending paleo strike-slip fault (Verdure Fault), which was reactivated during the Pennsylvanian, late Cretaceous, and early Cenozoic. A resulting pop-up horst block (6,970 gross acs), and two downthrown fault blocks (6715 and 1800 gross acs) are constrained with multiple 2D seismic lines. In addition, isopach and isochron mapping indicate migration into the three structures has been occurring since the early Pennsylvanian - or roughly 320 million years.
Post-salt Resource:
Adjacent to Cedar Point finger mesa, Bug and Papoose Fields have produced almost 9 MMBO (from 29 wells) in Pennsylvanian stratigraphic algal mounds immediately above the Akah Formation. The Penn Desert Creek Formation exhibits IP’s in excess of 500 BOPD, and a 3-well drilling program has been partially de-risked via well positioned 2D sesimic. In addition, a ~2000 acre downthrown structural closure for Permian and Upper Pennsylvania sandstones create supplemental serendipity.
Helium Analog: Doe Canyon Field:
Located ~16 miles east of the Red Helium Project in western Dolores County, Colorado, Doe Canyon field was originally exploited by Kinder Morgan for CO2, but its helium concentration was higher than expected, leading to direct helium sales via an arrangement with Air Products, Inc. The Leadville dolomitic reservoir averages 85’ of net pay (avg 12-13% Φ) and is presently producing ~280 MCFD of helium, plus has produced ~650 BCF of gross gas to date (>95% from only 10 wells). The field has an overall average of .45% helium/95% CO2, with a Pmean IP of ~23MMCFD. With an expected EUR of ~900 BCF, Doe Canyon could ultimately yield ~4 BCF in helium resource from only 9000acs. [Note: ~1 BCF of helium had been lost during the 9 years prior to Air Products stripping out the helium]
Primary Objectives
Middle Mississippian ‘Leadville’ Formation
o Target depths: 7500’-8100’ (MD/TVD)
o Avg porosity: 6-9% (90-100% dolomite)
o Anticipated flow rates (vertical wells): 5-10 MMCFD (~2500 BHP)
o Helium: 0.6 to 1.1%
o CO2: ~80% (N2 the remainder)
Devonian ‘McCracken’ sandstone (Analogs: Lisbon Fld, Ut; Tocito Dome, NM)
o Avg porosity: 10-15%
o Anticipated flow rates: 3-5MMCFD (without fracture stimulation)
o Guesstimated Helium %: * 0.5 – 1%
*Red-area lacks Devonian gas compositions
Desert Creek Formation
o Estimated Total Depth: 6400’ (MD/TVD)
o Avg porosity: 11%
o Anticipated flow rates: 500-700 BOPD and 500-700 MCFD
o Anticipated EUR: 200 - 250 MBO and .5 - .7 BCF per well
o Bug and Papoose Canyon Analog production: 9 MMBO + 42 BCF (29 wells)
Honaker Trail/Cutler Formations
o Target depths 4000’-5800’
o Combination structural/stratigraphic sandstone reservoirs: AVO driven
o Avg porosity: 12-14%
o Anticipated flow rates: 1500-2500 MCFD
o Anticipated EUR: 1 to 3 BCF per well
o Helium percentage TBD
UNRISKED Reserve Estimate:
· Leadville: 5.8 BCF Helium; 655 BCF CO2
· McCracken: 1.8 BCF Helium; 195 BCF CO2
· Desert Creek: 750,000 BO; 3.9 BCF methane
· Honaker Trail/Cutler: 20 BCF methane; 50,000 BC
· Additional Targets: Entrada, Ismay, Gothic Shale, Ouray, Aneth, Cambrian
3D Summary
· 3D Manager: Telemark Energy Services
· Preliminary Budget: $40.7K/sq mi
· Includes permitting, surveying, design, project mgmt., recording, field QC
· Recording completed by January 15th, 2025
· Project supplemented by the purchase and reprocessing of 150 linear miles of 2D in the area
Engineering:
1st Location #1:
o Spud date: Early 3Q2025
o Vertical, Land location, ~8500’ total depth
o DHC: ~$3.8 MM, which includes:
7” intermediate casing, a 5.5” liner, and $16K/day rig rate.
Evaluation of the Desert Creek formation
o Completion/hook-up: TBD
o Salt section drilled with salt saturated 10+ ppg brine. OBM mud also an option
o Leadville Fm drilled underbalanced with combination fresh water and N2-air-mist system
Land:
Most of the leases are private fee, with a mixture of Utah State minerals. The surface is primarily
agricultural fields. It’s anticipated the bulk of the crops will be harvested once recording commences.
For additional information or questions, please contact:
Keith Martens, Grand Gulf Energy, LTD, +61 411 461 953 (cell), keith@martens.net.au
Tim Rynott, Four Corners Helium, LLC 970-946-8192 (cell), tim@fourcornersheliumllc.com
