Georgina Energy is advancing its onshore Australian operations, focusing on expanding its acreage and progressing a significant drilling campaign. The company highlights Australia as a favorable jurisdiction due to its streamlined permitting processes and high concentrations of helium and hydrogen.

Hussar Prospect Drilling Campaign

The company is preparing to drill the Hussar prospect in the EP 513 permit, Western Australia, in the third quarter. Requests for quotation for a drilling rig have been launched, with a final decision expected by 25 February; the Explorer rig is currently preferred. The primary target is the subsalt of the Townsend formation, a potential major gas play expected to yield helium and hydrogen as by-products. The prospect's estimated in-situ value is $55 billion for helium and hydrogen and $5.24 billion for natural gas.

The operational timeline involves securing the rig and ordering long-lead items in the first quarter, followed by finalizing engineering and mobilizing equipment and services in the subsequent three months. Site preparation, including airstrip and road repairs and pad construction, is scheduled for the second quarter. Detailed program evaluations commenced on 12 February. Regulatory approval from the Western Australian Department of Mines, Petroleum & Exploration was secured previously, and operating agreements with Harlequin, Schlumberger, and Aztech Well Construction are in place for site planning.

Offtake Agreement and Funding

In January, Georgina executed an offtake memorandum of understanding with Halo Capital Investments for production from the Hussar and Mt Winter prospects. This includes a $25 million structured funding facility for the Hussar-2 well and site repairs. Under this arrangement, Georgina will not be involved in downstream refining and gas sales.

Portfolio Expansion via Acquisition

Georgina is expanding its Australian footprint through an agreement to acquire 100% of three Central Petroleum subsidiaries, gaining interests in permits EP 125 Mt Kitty, EP 112 Dukas, and EP 82 Mahler. Dukas is described as a "megastructure" with P50 unrisked natural gas resources of 991 billion cubic feet, potentially the largest identified helium, hydrogen, and hydrocarbon prospect in Australia. Mt Kitty was previously drilled by Santos in 2013, and a 2019 drilling attempt was halted before reaching the primary target.

Business Model and Additional Prospects

The company considers its operations derisked, as its business model is an "engineering exercise" targeting well locations that have previously flowed gas. Furthermore, Georgina has submitted an advanced work programme to the Northern Territory Mines Department for approval to advance drilling, re-entry, and flow-testing of its Mt Winter prospect.