Georgina Energy targets December drilling at Hussar after key approvals

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

At Georgina's EP513 Hussar prospect in the Officer Basin, Western Australia, GEX reported steady progress, with drilling permits, well design, safety plans, well management, and re-entry programs all in place for a December 2024 commencement of operations. The project's operator has been formally approved and sanctioned by DEMIRS as GEX's wholly-owned Westmarket Oil & Gas.

Georgina also reported good progress on exploration at EP513 with a new sharing agreement for seismic data reprocessing, expected to yield improved mapping of the Officer Basin. The agreement will be submitted with GEX's drilling program to DEMIRS.

GEX expects to be on-site at Hussar in November to complete site inspections and an environmental survey with the traditional landowners addressing heritage matters as final steps before acquiring the drill permit from DEMIRS and commencing operations in December.

At Georgina's EPA155 Mount Winter Prospect in the Amadeus Basin, Northern Territory, GEX reported a positive meeting with the traditional landowners and Central Land Council in early September. The meetings are expected to yield a formal confirmation on GEX's EPA155 application shortly. In the meantime, GEX has engaged consultants to reprocess the 2D seismic data for the site.

View from Vox

A highly positive operational update from Georgina as it continues to advance permitting and preparations for its 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. Based on today's update, investors can expect operations at Hussar to commence in December 2024. Markets welcomed the news, sending GEX shares 15% higher in early trade.

DEMIRS, Australia's mining regulator, should grant GEX a drilling permit for Hussar in the coming weeks, given GEX has met all formal requirements. Additionally, GEX's successful meeting in September with the CLC and the traditional landowners for the Mt Winter prospect means the main permitting hurdle has been cleared for that project as well, with formal confirmation from both groups expected shortly.

GEX is also investigating several additional re-entry targets for post-completion of the developments at both projects. GEX said it has approached potential partners to gauge interest in either a farmout or direct interest, which would further bolster the project's value. While no concrete plans were announced today, we expect such agreements to materialise should the projects succeed to unlock the prospective resources announced to date.

Hussar is considered one of the most potentially lucrative resource basins in the Asia-Pacific region, hosting unrisked 2U prospective (recoverable) resources of c. 155 BCFG of helium, c. 173 BCFG of hydrogen, and c. 1.75 TCFGE of hydrocarbons. Similarly, Mt Winter hosts unrisked 2U prospective resources of c. 148 BCFG of helium, c. 135 BCFG of  hydrogen, and c. 1.22 TCFGE of hydrocarbons.

Looking ahead, investors should expect a scoping study for both EP513 and EPA155 that will provide capital and operating cost estimates.

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