Georgina Energy Poised to Drill for Hydrogen and Helium Riches in Australia

• Anthony Hamilton, CEO of Georgina Energy PLC, discussed progress on the company's Hussar project, including an upcoming site visit to conduct surveys and inspections required to obtain a drilling permit.
• Georgina Energy aims to re-enter the Hussar well in December 2024, if the drilling permit is granted, with plans to drill out plugs, penetrate the sub-salt formation, and flow test for helium and hydrogen over a 50-day program.
• The company has also made progress on its Mt Winter project. It expects formal approval from traditional owners in December, followed by an agreement on access and work program before the permit is granted.
• Georgina Energy is in discussions with two unnamed significant gas production companies regarding potential farm-in agreements to develop assets prospective for helium and hydrogen jointly.
• A scoping study on Hussar is underway to evaluate the potential for byproducts in addition to helium and hydrogen, with results expected in January 2025 given the project's large scale.

Anthony Hamilton, CEO of Georgina Energy PLC, provided an update on the company's progress in developing its helium and hydrogen assets in Australia. The AIM-listed company is focused on two key projects, Hussar and Mt Winter, both of which are advancing towards the drilling stage.

Hussar Site Visit & Drilling Plans

From November 24-27, 2024, Hamilton will lead a team including traditional owner representatives, environmental specialists, and engineers on a site visit to the Hussar project. The purpose is to conduct an environmental impact study of the well pad and perform inspections to produce reports required by the Department of Energy, Industry, Mineral Resources (DEMIRS) to grant a drilling permit.

Hamilton explained, "Everything we said we were going to do in our prospectus, this is the process we're undertaking to meet those obligations."

He anticipates the permit could be granted within 7-10 days of the site visit, enabling drilling to commence in December.

The initial phase will involve bringing in an air-cooled rig to drill out the first cement plug at 30 meters depth. A larger rig will then be mobilized to drill through the primary plug at 70 meters and continue to the bottom of the hole, penetrating the sub-salt formation to yield natural gas containing helium and hydrogen.

"The $50 million question...is answered by drilling into the sub-salt," Hamilton stated. "We'll only truly know what we've got when we drill it, and we flow test it."

The entire re-entry program is expected to take approximately 50 days and is fully funded from the proceeds of Georgina Energy's recent placing.

Mt Winter Traditional Owner Approval and Permitting

Georgina Energy has also made significant headway on its Mt Winter project. In September, the company had a positive meeting with traditional owners, whose approval is required to convert the exploration application to a full permit.

Hamilton shared, "We now know from our Indigenous consultant that the traditional owners' approval has been ratified, and that process is now underway. We would expect that to be formally given to us in December."

Following the formal approval, Georgina Energy must agree with traditional owners regarding access to the work program. The permit application will then be submitted to the minister in the Northern Territory for final approval. The company expects the timing to align with its plans for Hussar.

Potential Farm-In Agreements with Major Gas Producers

As part of its strategy to expand its portfolio, Georgina Energy has been evaluating over 200 plugged and abandoned wells held by major gas production companies for their helium and hydrogen potential. This has been narrowed down to two prime candidates.

Georgina Energy has signed non-disclosure agreements with the two unnamed companies to review data and discuss potential farm-in terms. Hamilton noted helium and hydrogen are not core to these major producers, creating an opportunity for Georgina Energy to develop the assets and share in the upside.

"They can see our capability, they look at and understand our approach," he remarked. "And so they're interested in us being able to develop the assets because effectively it becomes, to quote a famous saying, money for jam."

Negotiations are still at an early stage, but upon reaching an agreement, Georgina Energy would commit to a certain level of expenditure to earn an interest and undertake an agreed work program. Any concluded farm-in agreements and a development timeline would be announced to the market.

Hussar Scoping Study to Evaluate Byproduct Potential

A scoping study is currently being conducted on the Hussar project to fully evaluate its potential, including possible byproducts in addition to helium and hydrogen. The recent reprocessing of seismic data and revised mapping have indicated Hussar is a "massive structure" with greater scale than initially anticipated.

Given the expanded scope, the study's results are now expected in January 2023. Hamilton likened the process to "trying to put a jigsaw puzzle together in the dark," emphasizing the importance of a thorough and measured approach by the team of experienced professionals undertaking the analysis.

Georgina Energy Poised to Deliver Key Milestones

With the Hussar drilling permit expected imminently and Mt Winter approvals advancing, Georgina Energy is on the cusp of a transformational period as it aims to prove up its helium and hydrogen resources. The coming months will see the company shift from planning to execution as it undertakes the much-anticipated drilling programs.

In addition, potential farm-in agreements with major gas producers could provide a platform for further growth and diversification of the portfolio. The ongoing scoping study is expected to shed greater light on the full extent of the Hussar opportunity.

While exploration inherently carries risk, Georgina Energy appears well-positioned both operationally and financially to deliver on its objectives. Positive results from its drilling campaign could be a major catalyst for the company and the emerging Australian helium and hydrogen sector.

The Investment Thesis for Georgina Energy PLC

• Near-term drilling at Hussar and Mt Winter projects, both prospective for strategically important helium and hydrogen resources
• Fully funded for planned activities following recent successful placing
• Potential farm-in agreements with major gas producers to expand and de-risk portfolio
• Ongoing scoping study to evaluate additional byproduct potential at Hussar
• Exposure to the growing demand for helium and clean hydrogen
• Experienced management team with track record of delivering complex resource projects
• Significant upcoming newsflow with drilling results and partnership announcements

Georgina Energy offers investors exposure to the burgeoning helium and hydrogen sectors through its two key assets, Hussar and Mt Winter. With drilling on the horizon and a healthy cash balance, the company can create value through the drill bit.

The recent operational update confirms the projects remain on track, with key approvals expected to facilitate drilling before year-end. The potential farm-in agreements and expanded scale of Hussar indicated by the ongoing scoping study provide further avenues for growth.

As the world seeks new sources of helium and clean energy solutions, companies like Georgina Energy that can delineate commercially viable resources will likely attract investor attention. The following 12 months should see the company's prospects come into clearer focus as the drills start turning.

Macro Thematic Analysis

The global push towards decarbonization and net zero emissions has renewed focus on the potential of hydrogen as a clean energy vector. When coupled with carbon capture and storage (CCS), hydrogen produced from natural gas could offer a pathway to low-carbon energy for hard-to-abate sectors. This has sparked a resurgence in gas exploration as countries and companies seek to secure hydrogen feedstocks. However, the economics of such projects rely not just on hydrogen but also on the value of byproducts like helium.

Helium is a critical element used in myriad high-tech applications, from semiconductors to medical imaging. With declining production from the U.S. Federal Helium Reserve and geopolitical risks around other significant sources like Qatar and Russia, the hunt is on for new sustainable supplies. Australia has emerged as a potential hub for hydrogen and helium production, leveraging its substantial gas resources and proximity to key Asian markets. The Australian government has introduced a range of incentives to support the development of clean hydrogen, including funding for feasibility studies, R&D, and pilot projects.

Companies that can capitalize on this supportive policy environment and prove that commercial hydrogen and helium resources are well-placed to benefit from the energy transition. As CEO Anthony Hamilton noted, for major gas producers, helium and hydrogen represent "money for jam" - a lucrative side stream that could enhance the economics of their core operations.

For junior explorers like Georgina Energy, success could be transformational, providing a pathway to cash flow and growth. As the company embarks on its maiden drilling campaign, it will be one to watch for investors seeking exposure to the emerging hydrogen and helium opportunities.