Grand Gulf Energy (ASX:GGE) has announced plans to raise $2.5M via a placement to accelerate the development of the Jesse-2 well at its Red Helium Project in south-east Utah.
The placement to professional and sophisticated investors will be satisfied through the issue of 113,636,363 shares at a price of $0.022 per share, and settlement is expected to occur on March 30.
Grand Gulf Energy says the Jesse-2 well exclusively targets the gas pay zone to minimise the risk of water production, with the planned total well depth terminating at least 50 feet above the identified gas/water contact at the previously drilled Jesse-1A well.
Drilling is currently proceeding ahead of schedule and is expected to take around a month to reach the final depth of 8,150 feet.