Georgina Energy advises Harlequin Energy has formally confirmed its intention to proceed with funding for the Hussar EP513 prospect for the anticipated recovery of Helium, Hydrogen and Natural Gas.
Harlequin has given notice to proceed with funding of the drilling of the Hussar-2 well within the EP513 Lease and undertaken to complete site repairs to the airstrip and access roads, construction of drilling pads, water wells and camp location pad, in preparation for drilling as set out in the Memorandum of Understanding ("MOU") signed on 24th August 2024. The Company has undertaken due diligence and been provided with Harlequin's USD$25 million structured offtake funding facility to finance Georgina's drilling program.
HUSSAR EP513: Harlequin has engaged Schlumberger Oilfield UK Limited to work in conjunction with Georgina's technical consultants (Aztech Well Construction) to proceed with the planning, engineering and drilling of an exploration well at Hussar. Harlequin will fund the Hussar drill program in a structured offtake financing arrangement.
The drilling program and site infrastructure works required to develop Hussar into a producing asset will be funded solely by Harlequin and their partners in a structured offtake funding arrangement that is non-dilutive for Georgina shareholders.
The structured offtake funding arrangement is Georgina's preferred approach to financing future drilling, as it enables gas sales at the wellhead while avoiding significant capital outlay by the Company, thus making it a non-dilutive solution for shareholders.
Drilling Program
Georgina's technical consultant, Aztech Well Construction have identified four drill rigs available in Australia that meet the required specifications for the 50-day drilling program.
- ENSIGN RIG 974
- MINRES EXPLORER RIG
- SAVANNA SLR RIG 186 (V4)
- VENTIA RIG 106 IDEAL PRIME
Following an extensive consultation process with Harlequin and Georgina's technical team to agree the timeline and technical aspects of activity, the Drilling Program broadly comprises the following:
Under the terms of a Joint Operating Agreement ("JOA") governing the drilling program for Hussar, Harlequin, Schlumberger and Aztech will plan all site activities in line with the Government (DMPE) approved Well Management Plan (WMP) lodged by Georgina in 2025.
Aztech have finalized detailed costings for the access roads, airstrip and drilling pad installation and will shortly complete costings for long lead items including casing, a well head, airstrip repair, water well drilling and reservoir evaluation services.
The Company has also undertaken an evaluation of the Hussar prospect to determine the potential for fracture porosity enhancement of the volumetrics with a revised estimation of total 2U Prospective (Recoverable) Resources of Helium 283 BCF, Hydrogen 315 BCF and Hydrocarbons 2.9 TCF, an increase of 30%. More detailed results will be released in due course.
Anthony Hamilton, Chief Executive Officer of Georgina Energy, commented:
'Georgina has received confirmation of a USD$25 Million structured off-take funding facility to develop both Hussar and Mt Winter which along with the recently announced acquisitions from Central Petroleum presents the company with the opportunity to become a significant participant in the extraction of Helium, Hydrogen and Natural Gas.'
Source: Georgina Energy
