Amidst talks of “Helium Shortage 4.0”, Grand Gulf Energy has inked a helium offtake agreement with Paradox Resources.

Based in Houston, US, Paradox Resources is owner of the Lisbon helium processing plant, located 20 miles north of Grand Gulf Energy’s Red Helium Project.

News of the agreement provides a path to monetisation of Grand Gulf Energy’s Jesse#1 well, if next month’s spudding plans are successful.

Key terms of the deal include an 80/20 industry standard revenue split, in favour of Grand Gulf Energy, as well as standard tariffs for gathering, compression and processing.

Dane Lance, Managing Director of Grand Gulf Energy, said, “We are excited to partner with Paradox Resources, a major player in the North American premium helium market with advanced capability, and look forward to exploring future opportunities together.”

“The offtake agreement is further validation of the technical merit of the pureplay Red Helium project, targeting a gross prospective resource of 10.9 billion cubic feet (bcf).”

Lance continued, “The signed drill contract and offtake agreement provide line of sight to monetisation of success at Jesse#1, at a time when one of the world’s most critically scarce commodities in needed most.” 

Already well established in the helium space, Paradox Resources owns over 100,000 net acres and operates over 150 wells in the Paradox Basin in Utah, Colorado, New Mexico and Arizona.

Further to the above, Paradox Resources’ processing plant is comprised of a 60 million cubic feet per day (mmcfd) treating plant with a 45 mmcfd cryogenic plant capable of liquefaction of 0.6 mmcfd of high purity helium.

Helium produced at the Red Helium Project can be utilised in many different ways, such as for semiconductor manufacturing, medical applications, space and defence industries and much more.

Todd Brooks, President and CEO of Paradox Resources, said, “Paradox is pleased to be working with Grand Gulf as drilling commences.”

“We look forward to working together to realise the potential of the region’s significant underdeveloped resources, as the bring on their helium-targets gas steam and Paradox provide take away capacity for processing, production and sales.”

It is hoped today’s deal will relieve some of the strain felt by the helium industry at present.