SMALL CAP MOVERS: Georgina Energy gearing up for IPO
Georgina Energy chief executive, Anthony Hamilton, says he is in the business of well redevelopment.
Its blueprint, conceived by technical director John Heugh, is to re-enter wells in Western and Central Australia abandoned in the 1980s, but where the success rate was 100 per cent.
This approach is cost-effective for accessing a geological formation perspective for hydrogen and helium, both in high demand in the modern green global economy, as well as traditional natural gas.
Work will commence at Hussar in preparation for drilling in December, which is expected to take around 50 days.
The historic nature of Georgina’s EP513 target means there’s a drill pad, access roads, and [relatively] nearby oil and gas infrastructure. A rig can be mobilised and on-site in days.
Hussar is one of two Georgina projects with a combined footprint of 3,951 km² – the second being EPA155, a farm-in that gives the company the right to earn up to 90% of the asset.
To finance development costs, Georgina is raising around £5 million via a reverse takeover transaction, listing the company on the LSE’s standard list.
It is expected to debut on July 30. After that, the countdown to December begins: The application for drilling permits will be made, while environmental sign-off will be sought.
Already in place is a native title land access agreement and a fully costed well re-entry programme.
Hamilton and his team will then reprocess additional seismic data and assess the results of recent airborne surveys.
The plan is to re-enter EP513 and drill to a depth of around 3,200 meters through existing geological horizons into the Basal Broome and Townsend formations before reaching the targeted granite basement.
If all goes to plan, this will be a vertical re-entry, though Hamilton and his experts also have a side-track solution if required.
Success would see the company producing helium, hydrogen, and gaseous hydrocarbons, which would require onsite refining facilities.
Georgina’s lower-risk, low-cost approach involves selling the output at the well-head, with the price based on the product’s composition.
The customer, or ‘off-taker’, would be responsible for separation and transportation. Management is evaluating the use of salt caverns for storage and plans to begin negotiations with the owners of a refinery in Darwin, Northern Territory.
The processing units themselves are modular, transportable, and scalable. Hamilton and the team first need to drill the well before interpreting the results to see if what they have is commercial.