Grand Gulf’s Namibia Oil Option and Utah MoU Raise Questions on Funding and Exploration Timelines

Strategic Entry into Offshore Namibia

Grand Gulf Energy Ltd (ASX – GGE) has made a significant strategic move by securing an exclusive option to acquire 100% of Wrangel Pty Ltd, the applicant for a 70% working interest in Block 2312 offshore Namibia. This block, situated in the prolific Walvis Basin, spans approximately 16,800 square kilometres and is surrounded by recent multi-billion-barrel discoveries from industry giants such as Shell, Chevron, TotalEnergies, and GALP. The area benefits from extensive seismic data, including 6,100 square kilometres of 3D and 4,700 line kilometres of 2D seismic surveys, providing a solid technical foundation for exploration.

Independent auditors Nether Sewell and Associates Inc (NSAI) estimate a mean un-risked prospective resource of 1.1 billion barrels of oil across three key prospects within the block. While these estimates are un-risked and contingent on future exploration success, they highlight the high-impact potential of the acreage. Grand Gulf’s transaction structure is designed to minimise upfront costs, with consideration payable only upon the grant of a Petroleum Exploration Licence (PEL), underscoring a prudent approach to capital deployment.

Technical Expertise and Growth Potential

To bolster its technical capabilities, Grand Gulf has engaged Havoc Services, led by oil and gas veteran Dr Alan Stein, who brings a track record of over 2 billion barrels discovered and more than US$1 billion raised in capital. This partnership aims to guide exploration efforts and maximise the value of the Namibia block. The move positions Grand Gulf to participate in one of the world’s most dynamic offshore oil exploration frontiers, potentially unlocking material growth for the company.

Collaborative Helium and Potash Exploration in Utah

In parallel with its offshore oil ambitions, Grand Gulf has signed a non-binding Memorandum of Understanding (MoU) with TSXV-listed Sage Potash Corp to jointly explore helium and potash opportunities in Utah’s Paradox Basin. The collaboration focuses on co-funding a 3D seismic survey over an Area of Mutual Interest and contemplates drilling a well targeting both helium and potash resources.

The Red Helium Project, where Grand Gulf holds helium rights, overlaps geographically with Sage’s potash project, enabling operational synergies. The Jesse-1A well has already confirmed a high-grade helium system, intersecting a substantial gas column with 1% helium content and flowing 1 million cubic feet per day of raw gas during testing. The planned seismic survey is critical to de-risking future drilling locations and advancing towards commercial helium production.

Financial Position and Outlook

For the June 2025 quarter, Grand Gulf reported a net cash outflow from operating activities of A$134,000 and ended the period with cash and equivalents of A$1.136 million. Payments to related parties, primarily directors’ fees, amounted to A$55,001. The company continues to evaluate strategic growth opportunities across its helium and oil and gas portfolios, aiming to maximise shareholder value while maintaining a disciplined financial approach.

Overall, Grand Gulf Energy’s June quarter activities reflect a dual-pronged growth strategy – advancing a high-potential offshore oil play in Namibia with minimal upfront risk, while leveraging collaborative exploration to unlock value in the emerging helium and potash sectors in Utah. Both initiatives could materially reshape the company’s asset base and future production profile.