Georgina Energy (GEX) , an Australia-focused natural resources explorer, issued an update on its flagship projects - the EP513 Hussar prospect in the Officer Basin, Western Australia, and EPA155 Mt Winter prospect in the Amadeus Basin, Northern Territory. GEX confirmed the publication of a previously announced scoping study, evaluating the development potential of the projects and outlining key economic parameters.
The scoping study establishes strong commercial viability and economics for Hussar, confirming the potential for a profitable gas field development, capable of producing helium, hydrogen, LNG, and argon. Specifically, the study establishes a 40 MMscfd raw gas flow scenario, generating an IRR of 27.3% and an NPV of US$1.64bn at a 10% discount rate. Capex is estimated at US$1.13bn.
In terms of revenue, the study estimates pre-tax profits of US$7.3m-US$208m per year - a wide range, contingent on production rates and gas prices. Another key factor is potential partnerships, with GEX executives currently in discussions with potential offtake partners. Georgina already has an MOU with Harlequin Energy to facilitate the sale of helium, hydrogen and natural gas from Hussar and Mt Winter.
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Georgina announces a positive scoping study covering its wholly-owned EP513 Hussar and EPA155 Mt Winter prospects in Australia, further confirming the projects' strong economics and potential to produce commercial quantities of helium, hydrogen, and natural gas. The study should also facilitate ongoing offtake negotiations. GEX shares climbed 9% on the news.
The study's base case establishes a robust framework for Hussar's commercial development, with the aforementioned 40 MMscfd separation plant delivering 27.3% IRR and US$1.64bn NPV. The economic assessment for the plant to process He, H, LNG, and Ar is based on a raw gas wellhead delivery price of US$2.0/Mcf and assumes a 20-year project life.
The range of estimated pre-tax profits is wide - US$7.3m to $208m per year, based on total field flow rates of 10-60 MMcfgd and prices of raw wellhead gas of US$4-US$10/Mcf. The wide range reflects the early stage of development at Hussar and potential scalability of production. In any case, the well reentry development would be commercially viable. There is further significant upside should helium prices exceed US$700/Mcf, with an IRR over 35% at US$900/Mcf.
Hussar is considered one of the most lucrative resource basins in the Asia-Pacific region. Following a recent resource upgrade, the asset is estimated to host unrisked 2U prospective resources of 196 bcfg of helium, 218 bcfg of hydrogen and 2.03 tcfg of hydrocarbons. Once commenced, Hussar's well reentry process is expected to take approximately 50 days.
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