Georgina Energy Reports 20% Resource Upgrade at Hussar Project

• Georgina Energy has reported a substantial 20% increase in prospective resources at its EP513 Hussar project, with revised estimates showing 196 BCFG of helium, 218 BCFG of hydrogen, and 2.030 TCFG of hydrocarbons.
• The company plans to commence drilling operations in December 2024, following a preparatory site visit in November, marking the culmination of a five-year development journey.
• New seismic data has confirmed a significant pre-salt structural closure of 300 km² at the target reservoir depth in the Townsend Formation.
• The company has signed a 24-month confidentiality agreement with an established Australian-listed oil and gas producer to evaluate potential acquisitions or farm-outs.
• Environmental surveys with Traditional Landowners are scheduled for November 2024, a crucial step in obtaining drilling approval for the Hussar 1 Well re-entry program.

Georgina Energy PLC (LSE:GEX) is an ambitious energy exploration company positioning itself to become a leading global producer of helium and hydrogen. Through its wholly-owned Australian subsidiary, Westmarket O&G, the company holds two principal onshore interests: the Hussar Prospect in Western Australia's Officer Basin (100% working interest) and the EPA155 Mt Winter Prospect in the Northern Territory's Amadeus Basin (potential 75-90% interest). The company's strategic focus on these critical energy sectors aligns with growing market demand, particularly in the increasingly important helium and hydrogen markets.

Resource Upgrade Signals Major Progress at EP513 Hussar

Georgina Energy's latest resource assessment at the EP513 Hussar project has revealed a significant upgrade in prospective resources. An independent Competent Person's review, incorporating new seismic data, has identified a 20% increase in unrisked 2U Prospective (Recoverable) Resources. The revised estimates now stand at approximately 196 BCFG of helium (up from 155 BCFG), 218 BCFG of hydrogen (up from 173 BCFG), and 2.030 TCFG of hydrocarbons (up from 1.75 TCFG).

The upgrade follows the synthesis of new seismic data, which has provided enhanced understanding of the deeper structural elements at Hussar. Notably, the data confirms the presence of a substantial 300 km² pre-salt structural closure at the target reservoir depth within the Townsend Formation.

Operational Timeline & Development Strategy

The company has outlined a clear operational timeline for the remainder of 2024. A crucial environmental survey, conducted in collaboration with Traditional Landowners, is scheduled for November. This survey represents a key requirement for obtaining drilling approval for the Hussar 1 Well re-entry program, planned for December 2024.

The original Hussar 1 Well, which reached a depth of 2,040 meters, will be extended to approximately 3,200 meters to penetrate the subsalt Townsend target reservoir. This deeper penetration is expected to access the significant accumulations of helium, hydrogen, and natural gas identified in the resource estimates.

Strategic Partnership Development

In a parallel development, Georgina Energy has executed a significant 24-month confidentiality agreement with an established Australian-listed oil and gas exploration and production company. This agreement, signed through Westmarket Oil & Gas Pty Ltd, aims to evaluate potential acquisition or farm-out opportunities between the parties.

The partnership represents a strategic move following the company's recent review of additional well re-entry targets beyond the Hussar and Mt Winter drilling programs. The involvement of a partner with established Australian onshore gas production assets and significant acreage holdings could provide Georgina Energy with valuable growth opportunities.

Regulatory & Technical Progress

The company, as the approved nominated Operator, is working closely with Aztech Well Construction to prepare comprehensive documentation for drilling approvals from DEMIRS (Department of Mines, Industry Regulation and Safety). This submission will incorporate the remapped seismic data and findings from the November preparatory site inspection report.

Beyond the Hussar project, Georgina Energy continues to progress towards the formal granting of EPA155 in the Northern Territory, where the Mt Winter Prospect represents the next phase in the company's development program. This dual-project approach provides investors with exposure to multiple potential value drivers.

Conclusion

For investors considering Georgina Energy, several key factors emerge:

• Resource Base: The 20% upgrade in prospective resources strengthens the company's fundamental value proposition, particularly in the strategic helium and hydrogen sectors.
• Execution Timeline: With clear operational milestones set for late 2024, investors can track tangible progress in the company's development strategy.
• Strategic Partnerships: The new confidentiality agreement opens possibilities for accelerated growth through potential farm-outs or acquisitions.
• Market Positioning: The company's focus on helium and hydrogen aligns with growing global demand for these critical gases.
• Risk Management: The planned drilling program at Hussar represents a relatively low-risk approach to resource development, with the potential for significant upside.

Georgina Energy presents an interesting opportunity for investors seeking exposure to the emerging helium and hydrogen sectors. The recent resource upgrade at Hussar, combined with clear operational timelines and strategic partnership developments, positions the company for potential value creation in the near to medium term. While success in resource exploration and development always carries inherent risks, the company's focus on low-risk projects in Australia, coupled with its strategic approach to partnerships and resource development, provides a balanced risk-reward profile for investors interested in the critical energy sectors of helium and hydrogen production.