Georgina Energy PLC (LSE:GEX) has announced a 37.8% increase in its recoverable resources at the Mt Winter prospect in Australia’s Amadeus Basin, following a new independent geological report.
The formal assessment, prepared by consultant Maki Petkovski, highlights the potential of fracture porosity, the natural cracks and fissures in rock formations, within both the Heavitree formation and the underlying basement granodiorite.
This has added significantly to the company’s previously estimated volumes of helium and hydrogen gas.
The upgrade is based on Georgina’s full 100% ownership of the Mt Winter tenement, which it recently increased from 75%, as part of an acquisition deal announced earlier this year.
The new resource estimate includes an additional 234 billion cubic feet of helium and hydrogen combined, bringing the total prospective resource to 1,734 billion cubic feet.
"Our technical team has been working tirelessly to complete drilling permitting and tenement applications for the well re-entry programs for both Hussar and Mt Winter," said CEO Anthony Hamilton.
"The increase (helium, hydrogen and natural gas) to the potentially recoverable resources in our Mt Winter asset is regarded as a major milestone in our program to re-develop low-risk helium, hydrogen and natural gas projects in Australia."
Fracture porosity is an important factor because it can create pathways for gas to accumulate, increasing the volume that can be recovered.
The report references the global significance of fractured basement reservoirs, citing the Bach Ho field in Vietnam as a major example.
Previous drilling at a nearby site, Mt Kitty-1, found encouraging helium and hydrogen levels, supporting Georgina’s confidence in the potential of the area.
The company is progressing plans to re-enter existing wells and assess new drilling opportunities as it works towards developing the Mt Winter resource.