Georgina Energy (GEX ) has received an additional expression of interest for an offtake agreement that includes pre-pay financing, aligned with a wellhead sales model where the offtaker funds downstream processing. The company also points to historical reporting of helium-3 potential in the Amadeus Basin, where pricing quoted in 2024 exceeded US$70 million per thousand cubic feet (Mcf).
The proposal envisages Westmarket Oil & Gas, Georgina’s wholly owned subsidiary, selling raw gas at the wellhead, with the offtaker funding separation units, pressure swing adsorption (PSA) systems and cryogenic purification. Georgina is reviewing terms, including proof of funding, and negotiations continue.
The structure under review supports recovery of sunk costs on prior investment, in addition to the pre-pay financing element. Products in scope would include helium, hydrogen and liquefied natural gas (LNG).
Georgina’s two major re-entry projects, Hussar in the Officer Basin (Western Australia) and Mt Winter in the Amadeus Basin (Northern Territory), target a combined independently assessed 2U/P50 Prospective Recoverable Resources of 430 billion cubic feet (Bcf) of helium, 432 Bcf of hydrogen and 3,764 Bcf of hydrocarbons at a 100% ownership level.
Consultants have reported helium grades up to 9% in Amadeus subsalt zones, predominantly helium-4, with industry reporting also documenting the presence of helium-3. Helium-3 is exceptionally scarce, with applications in fusion research, quantum computing, cryogenics, medical imaging and nuclear monitoring.
Pricing referenced by Gold Hydrogen in 2024 placed helium-3 above US$70 million per Mcf, around 140,000 times helium-4 pricing.
Gold Hydrogen’s Ramsay-2 well in South Australia recorded helium-3 concentrations up to 901 ppt. By comparison, Amadeus Basin samples reached 1,100 ppt, as noted by Dr Chris Boreham in “Helium in the Australian Liquefied Gas Economy.”
“To be in receipt of further offtake interest adds strength to our position as we continue to de-risk Georgina’s key projects. The terms of the proposed agreement are very encouraging and align with our scoping study recommendations and wellhead sales strategy,” said Georgina’s Chief Executive Anthony Hamilton.
“In addition, the potential for high levels of helium-3 reported by Australian Energy Producers in the Amadeus Basin underscores the strategic importance of our planned re-development programme and may represent an opportunity for further value creation, with the possibility of an additional income stream subject to the success of planned flow testing.”
View from Vox
A wellhead sales model with offtaker-funded processing and pre-pay financing could materially reduce upfront capital needs and accelerate timelines if it progresses to binding terms. Sunk cost recovery is another positive for project economics. The helium-3 angle is intriguing given reported concentrations and very high pricing. Near-term catalysts are likely to be flow-test results and concrete progress from expression of interest to a definitive offtake agreement.