Grand Gulf Energy (ASX:GGE) entered a nonbinding memorandum of understanding with Sage Potash to explore technical and operational cooperation within an area of mutual interest at the Red

Helium project in Utah, according to a Tuesday Australian bourse filing.

Sage Potash owns potash rights, and Grand Gulf controls helium and other commodity rights within the area of mutual interest.

The firms agreed to share the costs of a proposed 3D seismic survey targeting helium and potash. The agreement also provides for the potential joint development of common infrastructure as well as the possible drilling of a well designed to access both helium and potash.

Its shares jumped 33% on market close on Tuesday.