Georgina Energy PLC (LSE:GEX) told investors it has strengthened its hand at the Hussar and Mt Winter projects, in Australia, where a new scoping study confirms commercial potential.
The study, prepared by consultants Duncan Seddon & Associates, details key economic parameters, sensitivities, and strategic implications – and confirms scenarios for commercial production of helium, hydrogen, LNG, and argon.
It envisages a project net present value (NPV) of $1.64 billion and an internal rate of return (IRR) of 27.3%, based on a 40 million cubic feet per day ‘raw gas flow’ scenario.
That would yield between $7.3 million and $208 million of pretax profit per year, with the range varied based on production rates and also the respective gas prices.
“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,” chief executive Anthony Hamilton said in a statement.
Georgina Energy currently has a preliminary agreement (a non-exclusive Memorandum of Understanding) with Harlequin Energy, a special purpose company, for the sale of helium, hydrogen, and natural gas from Hussar and Mt Winter.
It sees Harlequin handling gas separation and processing, with helium and hydrogen processed on-site for export as cryogenic products.
Meanwhile, Georgina is also evaluating alternative development strategies, focusing on helium and natural gas recovery, with hydrogen used as an energy source for plant operations.