Georgina Energy

Georgina Energy Plc is a UK-domiciled company focused on developing helium, hydrogen and natural gas assets in Australia. The company completed a reverse takeover (RTO) of Mining Minerals & Metals Plc and listed on the London Stock Exchange's Standard List in July 2024. Georgina Energy holds 3,951 km² of exploration acreage across two projects - one in Western Australia and one in the Northern Territory.

The company's flagship asset is the Hussar project in Western Australia, which has estimated prospective resources of 155 billion cubic feet (BCF) of helium and 173 BCF of hydrogen, with a potential combined in-situ value of US$55 billion based on current commodity prices. Additionally, Hussar is estimated to contain 1.73 trillion cubic feet (TCF) of natural gas resources. Georgina Energy's second key asset is the Mt Winter project in the Northern Territory, where the company can earn up to a 90% working interest through a farm-in agreement.

Georgina Energy appears to be at a more advanced stage compared to some UK-listed helium exploration peers, with nearby wells drilled in the 1980s demonstrating 100% drilling success rates and potentially very high helium concentrations. The company is leveraging existing infrastructure and aims to fast-track development by re-entering and deepening historical wells.

The investment opportunity in Georgina Energy is underpinned by favorable supply-demand dynamics in the helium and hydrogen markets, as well as the scale and de-risked nature of the company's assets.

Global helium demand is currently outpacing supply, driven by growth in industries like semiconductors, medical imaging, and space exploration. With a lack of major new helium sources coming online and synthetic production not currently viable, prices have risen substantially. NASA recently signed a 5-year contract for helium supply at $920 per thousand cubic feet (Mcf), highlighting the tight market conditions.

Meanwhile, hydrogen is emerging as a key resource in the global push towards decarbonisation. Demand is forecast to triple by 2035 as countries and industries seek to reduce carbon emissions. Georgina Energy is well-positioned to potentially supply both blue hydrogen (produced from natural gas with carbon capture) and green hydrogen (produced from renewable energy).

The company's Hussar project alone has prospective helium and hydrogen resources with a potential in-situ value of US$55 billion. This scale compares favourably to UK-listed peers - Georgina Energy's total helium resources of 303 BCF exceed those of Helium One (212 BCF) and dwarf those of Helix Exploration (2.3 BCF). Additionally, Georgina Energy holds significant hydrogen and natural gas resources that provide further upside.

Importantly, Georgina Energy's projects appear relatively de-risked compared to greenfield exploration. Historical drilling in the 1980s proved the presence of helium, hydrogen and natural gas in the target areas. The company can leverage existing infrastructure, including roads, pipelines, and processing facilities, potentially accelerating the path to production and reducing development costs.

Georgina Energy is led by an experienced management team with relevant expertise across geology, finance, and stakeholder engagement:

Anthony Hamilton (CEO) brings over 35 years of experience in investment advisory and natural resource development. His background includes successfully raising US$55 million as CEO of an oil and gas company producing 28 million cubic feet of gas per day.

Mark Wallace (Executive Finance Director) is a Chartered Accountant with over 25 years of experience in global financial markets, including roles at major investment banks. His expertise in funding development projects and knowledge of off-take markets should prove valuable.

John Heugh (Executive Technical Director) has over 50 years of experience in oil and gas exploration geology. Notably, he was a founding director of Central Petroleum Ltd., Australia's largest holder of petroleum exploration acreage. His extensive helium exploration and target identification expertise is particularly relevant.

The board is rounded out by Peter Bradley (Non-Executive Chairman), a corporate lawyer with over 35 years of transactional experience, and Robin Fryer (Non-Executive Director), a former Deloitte partner with global mining industry leadership experience.

Additionally, Bob Liddle OAM serves as a consultant for Native Title & Indigenous Affairs, bringing over 50 years of experience in Australian indigenous and corporate relationship building. This expertise could prove crucial in navigating stakeholder engagement and obtaining necessary approvals.

Georgina Energy's growth strategy centers on rapidly advancing its two key projects towards production, with a focus on de-risking and staged development.

For the Hussar project, the company plans to reprocess existing seismic data and recently completed airborne electromagnetic (AEM) surveys to refine drilling targets. The next major milestone will be re-entering and deepening the EP513 Hussar well to a total depth of 3,200 meters, targeting helium, hydrogen, and natural gas zones.

In parallel, Georgina Energy is progressing commercial arrangements to support future production. The company has finalised a memorandum of understanding (MOU) for an off-take agreement with Harlequin Energy, covering hydrogen/helium purification. Negotiations are also underway with the Darwin Helium Refinery regarding potential processing.

A key aspect of the strategy is leveraging existing infrastructure to minimise capital expenditure and accelerate time to market. The company intends to utilise existing roads and drill pad locations, potentially reducing development costs and timelines.

Georgina Energy is also exploring innovative storage solutions, including the use of salt caverns. A recently completed salt cavern study could pave the way for eco-friendly "blue" hydrogen and helium production, with CO2 sequestered in solution-mined caverns.

For the Mt. Winter project, the initial focus is on completing seismic interpretation before re-entering or sidetracking the existing well to target the Heavitree Formation reservoir. This formation has demonstrated high concentrations of helium (up to 9%) and hydrogen (up to 11%) in nearby wells.

The company's commercialisation strategy aims to mitigate infrastructure costs by supplying directly from the wellhead under off-take agreements. As Hussar (Stage One) is commercialised, Georgina Energy plans to develop secondary wells to expand production.

Georgina Energy raised £5 million through its recent listing on the London Stock Exchange. The company has outlined its use of proceeds over the next 18 months, allocating funds across both the Hussar and Mt Winter projects.

For Hussar, key expenditures include £980,000 for drilling re-entry, £260,000 for well clean-out and new casing, and £374,000 for geophysical work and seismic processing. At Mt Winter, planned spending includes £150,000 for seismic reprocessing and £85,000 for well re-entry planning.

The company has budgeted £692,434 for general corporate and administration costs over the 18-month period. Additionally, £527,064 has been allocated for loan repayment.

Post-listing, Georgina Energy's anticipated capital structure comprises 90,088,396 shares. This includes 26,000,000 consideration shares issued for the RTO, 40,000,000 new shares from the £5 million placing, and 16,503,396 shares from the conversion of existing loans.

The company has also issued 31,500,000 milestone performance shares, which vest upon achieving key operational targets such as increasing the mineral resource estimate, drilling at Hussar, and drilling at Mt Winter. There are 19,002,932 warrants outstanding, providing potential additional funding if exercised.

It's worth noting that a significant portion of the share capital is subject to lock-up agreements, with 52% of the MMM plc shares locked in for 12 months and all consideration shares locked in for 12 months. This alignment of long-term interests between management and new investors is encouraging.

Georgina Energy presents an intriguing investment opportunity in the strategic helium and hydrogen sectors. The company's large-scale resources, relatively de-risked assets, and experienced management team position it favorably compared to peers in the UK market.

The focus on re-developing existing gas fields with proven flows and leveraging established infrastructure could accelerate the path to production. This approach, combined with the dual focus on helium and hydrogen, helps mitigate some of the risks typically associated with early-stage resource companies.

The recent listing and £5 million fundraise provide Georgina Energy with near-term capital to advance its key projects. If the company can successfully execute its strategy and achieve key operational milestones, there could be significant value creation potential for investors.

However, it's important to recognise that Georgina Energy remains an early-stage company with considerable risks. The success of the venture depends on favorable exploration results, efficient project development, and supportive commodity markets. Potential investors should carefully consider these factors and their risk tolerance before making an investment decision.

Overall, for investors seeking exposure to the high-growth helium and hydrogen markets, Georgina Energy offers a unique opportunity backed by substantial resources and a clear development strategy. The company's progress over the coming 12-18 months, particularly the results of the planned drilling program at Hussar, will be crucial in determining its long-term potential.