Georgina Energy Advances Helium Projects with Key Milestones at Hussar & Mt Winter

• Georgina Energy has completed a preliminary site inspection at its Hussar helium project in Australia, including heritage monitoring, environmental impact studies, and civil engineering assessments. The results were positive and the company plans to submit reports to regulators as part of the drilling permit application process.
• Georgina Energy has received formal notification that Traditional Owners have approved negotiations for an Aboriginal Land Rights Act agreement to grant the company's priority area of EPA155, which includes the proposed Mt Winter helium well. Granting of the permit is subject to ratification of the agreement by the Minister for the Department of Mining and Energy.
• Upon granting of EPA155, Georgina Energy will pay $15,000 to joint venture partner Oilco and meet other obligations to advance Mt Winter to the pre-drill stage, such as seismic reprocessing, well design, site preparation and regulatory requirements. This process is expected to take 2-3 months.
• CEO Anthony Hamilton stated in an interview that Georgina Energy is very hopeful regulators will move quickly to grant drilling approval at Hussar once all reports are submitted. The company aims to mobilize and commence re-entry drilling as soon as the permit is received.
• Georgina Energy is focused on developing low-risk helium, hydrogen and natural gas projects in Australia. The company believes the granting of EPA155 at Mt Winter and re-entry at Hussar will be significant milestones in executing this strategy and delivering value for shareholders.

Georgina Energy (LSE:GEX) is an energy company focused on exploring for and developing helium, hydrogen, and natural gas resources in Australia. The company's key projects include Hussar EP513 in Western Australia and Mt Winter EPA155 in the Northern Territory. Georgina Energy aims to capitalize on rising global demand for helium and clean energy by advancing low-risk, high-reward opportunities.

Hussar EP513 Site Inspection

Georgina Energy recently completed a preliminary site inspection at its Hussar helium project in Western Australia. Company representatives and consultants visited the site starting on November 18th to conduct heritage monitoring, flora and fauna surveys, and civil engineering assessments of the access roads and airstrip.

The heritage monitoring and environmental impact study was completed by Low Ecological Services along with Traditional Owners. Engineering consultants from Aztech Well Construction participated in the site visit and utilized local facilities at Carnegie Station for accommodations and support services. The station provides direct road access to the Hussar permit area.

According to the company, the site visit yielded positive results. Access roads, the drilling site and airstrip were found to be in good, serviceable condition despite recent heavy rains in the area. The on-site water access well was also inspected and confirmed to be functional. Additional potable water sources were identified at the nearby Madley 1 wellsite.

Next Steps at Hussar

With the preliminary site inspection complete, Georgina Energy now plans to submit the heritage, environmental and engineering reports to regulators at the Department of Mines, Industry Regulation and Safety (DEMIRS) within the next 10 days. These reports, along with revised seismic mapping from reprocessed data, will form part of the company's drilling approval application to re-enter the Hussar helium well.

In a recent interview, CEO Anthony Hamilton provided additional details on the path forward at Hussar:

"Essentially, as I've said now on numerous occasions, we are required to submit all of these reports as part of our drilling permit application. Once they're all submitted, which is one of the reasons I'm back in Australia is to ensure all of these reports filed and then lodged with DEMIRS and DEMIRS will then review them on the assumption that they're happy with everything they've got. Then on the basis of that, they would then grant us our drilling permit."

Hamilton expressed optimism that the approval process will move quickly once the reports are submitted, stating

"We're very hopeful that DEMIRS will move relatively quickly as they are prone to do".

He confirmed the company's intention is to mobilize and get the Hussar re-entry underway as soon as the permit is granted. The re-entry drilling program is expected to take approximately 50 days and is fully funded.

Mt Winter EPA155 Approval

In addition to progress at Hussar, Georgina Energy also provided a positive update on its Mt Winter helium project in the Northern Territory. The company has received formal written notification from the Central Land Council (CLC) that Traditional Owners have approved and instructed the CLC to commence negotiations on an Aboriginal Land Rights Act (ALRA) agreement.

The ALRA agreement would grant Georgina Energy access to its selected priority area of exploration permit application EPA155, which includes the proposed Mt Winter 1 re-entry well. The Central Land Council has notified the Northern Territory Minister for Mining and Energy and the Commonwealth Minister for Indigenous Australians of the Traditional Owners' decision.

Granting of the official exploration permit is now subject to the negotiation and ratification of the ALRA agreement by the Minister for the Department of Mining and Energy. Once the ALRA is executed, Georgina Energy's lawyers will submit formal notice to the Department pursuant to the Petroleum Act 1984 requesting the permit be granted. The company anticipates this process will take approximately 2-3 months.

Upon official granting of EPA155, Georgina Energy, through its subsidiary Westmarket Oil and Gas, will hold a 75% operating interest in the permit. Georgina Energy will pay $15,000 to its farm-in partner Oilco and will meet other obligations like seismic reprocessing and analysis.

CEO Anthony Hamilton highlighted the importance of the EPA155 approval and Traditional Owner support in a statement:

"The granting of the revised Mt Winter Exploration Permit with the prospect will be seen as a significant milestone and the result of hard work undertaken by the Georgina team, in particular, Mr Liddle OAM. We're very pleased to move forward with the development of Mt Winter, fulfil the outstanding requirements and pursue our low-risk, high-reward re-entry strategy."

Georgina Energy intends to apply learnings from Hussar to develop a pre-drill program and fulfill regulatory requirements to advance Mt Winter in a similar manner once EPA155 is granted. This will include finalizing well design, site preparation, and pre-drill regulatory and operational planning. A Joint Operating Agreement will also be negotiated between the joint venture partners.

Executing the Strategy

With the positive developments at both Hussar and Mt Winter, Georgina Energy believes it is well positioned to continue advancing its strategy of pursuing low-risk, high-reward helium opportunities in Australia.

Global demand for helium is on the rise, driven by needs in the technology, medical and industrial sectors. Australia is seen as an attractive jurisdiction for helium exploration and development due to its stable regulatory framework and significant untapped resources.

By focusing on previously drilled wells with helium shows, like Hussar EP513 and Mt Winter 1, Georgina Energy aims to prove commerciality, establish production and cashflow in an accelerated timeframe compared to greenfield exploration. Both prospects are located near existing infrastructure and services which may improve project economics.

The Hussar and Mt Winter projects also offer exposure to natural gas and natural hydrogen, providing potential upside to complement the helium focus. With energy transition gaining momentum globally, demand for cleaner burning natural gas and carbon-free hydrogen is expected to increase in the coming years.

Key Takeaways

The preliminary inspection results at Hussar EP513 and EPA155 approval at Mt Winter mark important steps forward for Georgina Energy. The company remains focused on efficiently utilizing its resources to deliver key operational milestones and prove its helium exploration strategy.

Investors will likely be watching closely for the official grant of the drilling permit at Hussar and the conversion of Mt Winter to exploration permit status. Successful drilling and testing outcomes at either project have the potential to be significant catalysts for Georgina Energy, although risks remain given the early stage.

With a clear strategy, prospective assets, and proven management team, Georgina Energy offers a compelling opportunity for investors seeking exposure to the growing helium and clean energy sectors in Australia. The company appears well funded and technically capable of continuing to make steady progress in the near-term to create shareholder value.