REG - Georgina Energy PLC - Publication of Scoping Study to Hussar & Mt Winter

Georgina EnergyAnnouncement

25/02/2025 07:00

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RNS Number : 2663Y  Georgina Energy PLC  25 February 2025

THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT QUALIFIED OR
MAY HAVE QUALIFIED AS INSIDE INFORMATION WITHIN THE MEANING OF (A) ARTICLE
7(1) OF UK MAR IN SO FAR AS IT RELATES TO ORDINARY SHARES ISSUED BY GEORGINA
ENERGY PLC

 

 

25 February 2025

 

Georgina Energy plc

 

("Georgina", "Georgina Energy" or the "Company")

 

Publication of the Scoping Study

to Hussar & Mt Winter

 

Georgina Energy plc, GEX.L, a helium, hydrogen and natural resources
development company in Australia, is pleased to publish the scoping study of
Hussar, completed by Duncan Seddon & Associates Pty Ltd, Australia, an
Independent Consultant to the Company.

 

The scoping study evaluates the potential commercial development of the Hussar
and Mt Winter projects in Western Australia and the Northern Territory
respectively, outlining key economic parameters, sensitivities, and strategic
implications.

 

 

Highlights

·      Confirmed viability: The study confirms the potential for a
commercial gas field development at Hussar, capable of producing helium,
hydrogen, LNG, and argon.

·      Strong financials: A 40MMscfd raw gas flow scenario generates
an IRR of 27.3% and an NPV of US$1.64 billion (10% discount rate).

·      Revenue potential: Pre-tax profits estimated between US$7.3
million to US$208 million per annum, depending on production rates and gas
prices.

·      Ongoing discussions: Georgina executives are currently
in London engaging with potential offtake partners.

 

 

Project Overview and Offtake Agreement

 

Georgina has in place a non-exclusive Memorandum of Understanding ("MOU") with
Harlequin Energy Ltd, a UK registered special purpose company, to facilitate
the sale of helium, hydrogen and natural gas from its 100% owned Hussar and Mt
Winter projects. The Harlequin offtake arrangement will include:

 

·      Sale of raw gas at the wellhead to Harlequin who would be
responsible for separating and processing the various commercial components
inclusive of helium, hydrogen, argon and natural gas in the form of LNG.

·      Helium and hydrogen would be processed on-site to cryogenic
products ready for export.

 

 

Scoping Study Summary

 

The base case provides a conceptual framework for the commercial development
of the Hussar project.

The economic assessment for the Offtake Separation Plant to process helium,
hydrogen, LNG, and argon is based on a raw gas wellhead delivery price of
US$2.0/Mcf and assumes a 20-year project life.

 

Key financial estimates include:

 

·      Capital Expenditure (Capex): US$1.13 billion (for
a 40MMscf/day separation plant), includes 10% discount rate.

·      Gross Annual Revenue: US$470.8 million.

·      Net Present Value (NPV): US$1.64 billion.

·      Internal Rate of Return (IRR): 27.3%.

·      Key Sensitivities:

o  Significant upside if helium prices exceed US$700/Mcf, with an IRR over
35% at US$900/Mcf.

o  Negative impact if gas feed rates drop below 30MMscf/day or helium
prices fall below US$550/Mcf.

 

Based on potential total field flow rates of between 10-60 MMCFGD, and sale
prices for raw wellhead gas ranging from US$4-US$10/Mcf, the study estimates
potential net pre-tax profits between:

·      $20,000 to $570,000/day

·      $7.3 million pa to $208 million per annum.

 

The wide range of outcomes reflect the early stage of development of the
Hussar project and the potential scalability of production.

 

The scoping study can be found at: Link
(https://wp-georgina-energy-2023.s3.eu-west-2.amazonaws.com/media/2025/02/Georgina-Energy-Plc-Scoping-Study-Hussar-February-2025.pdf)

 

Anthony Hamilton, Chief Executive Officer of Georgina Energy, commented: "The
scoping study enhances the Company's understanding of the proposed off-take
negotiations following the successful development of both Hussar and Mt
Winter, which aim to produce commercial quantities of helium, hydrogen, and
natural gas in Australia. Additionally, we anticipate an update on Hussar's
progress regarding the EIS2, with planning currently underway."

 

 

Alternative Development Strategy

 

Due to the revenue stream being primarily dominated by helium sales, a lower
cost alternative was also evaluated, focusing on helium and natural gas
recovery, with the hydrogen component being utilised to provide energy for the
separation and cryogenic production of LNG and helium.

 

This would require the design of a bespoke hydrogen oxidation unit to manage
the relatively high concentration of hydrogen in the separated helium stream.
Utilising this process would result in additional sales of LNG as the
application of natural gas as an energy source for the plant operations would
be at least partially supplanted by the oxidation of the hydrogen component.

 

 

Conclusion

 

The scoping study confirms that the development of a gas field at the Hussar
Prospect to produce liquid helium, hydrogen, LNG and argon is a commercially
viable option. Based on a 40MMscfd raw gas flow the project could produce an
internal rate of return over 27%.

 

Georgina Executives are currently in London for further discussions with
potential offtake partners, reinforcing the Company's commitment to advancing
the commercialisation of its assets.

 

 

Next Steps

 

·      Further discussions: The Company continues offtake negotiations
and strategic partnership discussions.

·      Regulatory progress: Updates on the Hussar EIS2 process are
expected as planning progresses.

·      Ongoing technical evaluation: The Company is refining development
models to optimise commercial returns.

 

 

 

END

 

 

 

 

Enquiries

 

Georgina Energy

 Tony Hamilton  via georginaenergy@apcoworldwide.com (mailto:georginaenergy@apcoworldwide.com)
 Mark Wallace

Tavira Financial Ltd - Financial Adviser and Joint Broker

 Jonathan Evans     +44 (0)20 3833 3719 (tel:+442038333719)
 Oliver Stansfield

 

Oak Securities - Joint Broker

 Jerry Keen       +44 (0)203 973 3678 (tel:+442039733678)
 Henry Clarke
 Dillon Anadkat

 

Financial PR via georginaenergy@apcoworldwide.com
(mailto:georginaenergy@apcoworldwide.com)

 Violet Wilson  +44 (0)203 757 4980
 Letaba Rimell

 

Notes to Editors

 

Georgina Energy aims to become a leading player in the global energy market
and is focused on establishing itself among the top producers of helium and
hydrogen worldwide. With a strategic approach and leveraging the experienced
management team's expertise, Georgina Energy aims to capitalize on
opportunities in these critical energy sectors.

 

Georgina Energy has two principal onshore interests held through its wholly
owned Australian subsidiary, Westmarket O&G.  The first, the Hussar
Prospect is located in the Officer Basin in Western Australia and Westmarket
O&G holds a 100% working interest in the exploration permit.  The second,
the EPA155 Mt Winter Prospect, is in the Amadeus Basin in the Northern
Territory, which Georgina Energy will hold a 100% working interest on
completion of the share Sale Agreement and granting of the revised exploration
Permit.

 

For more information visit: https://www.georginaenergy.com
(https://www.georginaenergy.com/)

LinkedIn: Georgina Energy
(https://www.linkedin.com/company/georgina-energy/posts/?feedView=all)

Twitter/X: @GeorginaEnergy

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