Georgina Energy targets December drilling at Hussar, advances scoping study and farm-in negotiations

Georgina Energy (formerly Mining, Minerals & Metals) issued an operational update on its mining activities in Australia.

Georgina continued to advance its EP513 Hussar prospect in the Officer Basin, Western Australia. The company expects a preliminary site visit involving traditional landowners' representatives and rangers, construction engineers from Aztech Well (the well re-entry contractor), Georgina representatives, and Lowecol Environmental consultants, to occur between November 24-27, 2024.

The visit will generate reports to DEMIRS (Australia's mining regulator) in support of GEX's drilling application. Additionally, Hussar's recently announced resource upgrade (c. +20%) and ongoing processing of new seismic data and mapping will be submitted to DEMIRS to bolster the application. GEX reiterated its target to commence operations at Hussar in December 2024, pending a casing inspection and pressure test.

At Georgina's EPA155 Mount Winter Prospect in the Amadeus Basin, Northern Territory, GEX confirmed a successful meeting with the traditional landowners and Central Land Council in September 2024, with an official ratification and granting of the project by the CLC expected in December 2024. Georgina continues to reprocess and remap 2D seismic data in line with its farm-in obligations.

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Another positive operational update from Georgina as it continues to advance permitting and preparations for its two core assets in Australia - the EP513 Hussar prospect in the Officer Basin, Western Australia, and the EPA155 Mt Winter Prospect in the Amadeus Basin, Northern Territory, both targeting significant prospective resources of natural gas, hydrogen and helium.

Following a material resource upgrade for Hussar in October 2024 that boosted the unrisked 2U prospective resource by 20% to 196 bcfg of helium, 218 bcfg of hydrogen and 2,030 tcfg of hydrocarbons, the asset remains on track for well re-entry in December 2024. Likewise at Mt Winter, GEX moved closer to pre-drill with a formal approval by the CLC expected in December 2024. Markets welcomed the positive update, sending GEX shares 9% higher on Wednesday morning.

Hussar is considered one of the most potentially lucrative resource basins in the Asia-Pacific region, further bolstered by the recent resource upgrade. Similarly, Mt Winter hosts significant unrisked 2U prospective resources of c. 148 bcfg of helium, c. 135 bcfg of  hydrogen, and c. 1.22 tcfge of hydrocarbons.

GEX is also investigating several additional re-entry targets for post-completion of the developments at both projects. To that end, GEX has approached potential partners to gauge interest in either a farmout or direct interest, which would further bolster the project's value. On October 8, GEX said it signed an NDA for farm-in rights with a "well-established" Australian-listed oil and gas explorer. Today, GEX confirmed a second agreement with a major Australian hydrocarbons producer.

Looking ahead, investors should expect a scoping study for both EP513 and EPA155 that will provide capital, operating cost, and revenue estimates. The study will evaluate a large-scale separation plant for hydrogen, helium and natural gas at or near the Hussar site, including evaluations of production profitability. The first draft of the study is expected in January 2025.

All of GEX's work programmes are fully funded from its recent listing. GEX received approx. £4.2m in August following its July 31 2024 admission to trading on the LSE Main Market.

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