Georgina Energy PLC (LSE:GEX) this week took steps forward for its Mt Winter and Hussar projects, bringing a key drilling programme to the horizon.
The company said it expects to finalise the Aboriginal Land Rights Act (ALRA) agreement for Mt Winter shortly, having been advised that there are “virtually no objections” to the proposed terms. It noted that finalisation of the agreement is partly dependent on the Central Land Council’s current focus on the neighbouring Mereenie production agreement.
Georgina Energy also highlighted a 38% increase in recoverable reserves at Mt Winter, following reprocessed seismic data and structural evaluations. The company said two additional wells on site could offer further upside, though confirmation will depend on re-entry and physical assessment.
Chief executive Anthony Hamilton joined the Proactive studio to share more details with us. Here, we take a closer look at what was said.
Proactive: I'm joined by Georgina Energy CEO Anthony Hamilton. Tony, very good to speak with you. You're out with updates on both of your projects this week. So starting with progress at Mt Winter — what's the current status of the Aboriginal Land Rights Act agreement process, and when do you expect it to be finalised?
Anthony Hamilton: Good morning, Stephen. Look, we had the two announcements go out in fairly quick succession, simply to keep the market updated on where we're at. In the case of the ALRA — the Aboriginal Land Rights Act agreement — we've been advised there are virtually no objections to the content or the direction the agreement is going. So we expect it to be finalised shortly.
That said, the Central Land Council is very focused on the Mereenie production agreement right now, which is a significant agreement in the Northern Territory related to a nearby field that's been in production since the 1960s. But yes, we expect our agreement to come through fairly soon.
Proactive: Tony, how significant is the 38% increase in recoverable reserves at Mt Winter? What does it mean for future development?
Anthony Hamilton: The biggest thing about Mt Winter isn’t just the increase itself, which comes from reprocessed seismic data and the recent evaluation. There are actually two other wells on the site that sit over parts of that same structure, which could be very significant. Of course, we need to re-enter the wells and do the work — as the saying goes, if you want to know what it is, you've got to drill it.
Another important point is that Mt Winter sits in the Amadeus Basin, which has a history of high-yielding wells. Some of these wells, drilled around 2014, had high concentrations of helium, hydrogen, and natural gas — and they flowed at surface and were documented. So yes, we see huge potential at Mt Winter.
Proactive: Turning to Hussar — where do things stand with the revised Environmental Management Plan, and how close are you to final drilling approval?
Anthony Hamilton: As with everything we've talked about, we’ve lodged all our paperwork over a long period. Everything gets reviewed by regulators and interested parties, including the Central Land Council, traditional owners, and even pastoralists. Comments come back to what’s now called the Department of Mines, Petroleum and Exploration — previously DEMIRS. They then respond to us.
We received the last inquiry and have already filed our final response. There's nothing else outstanding. We’ve already secured approval for the well management program, which covers the engineering and broader approach. The part still pending is just one small piece. If we've answered everything correctly, we expect to get the final permit pretty shortly.
Proactive: Once those permits and approvals are in hand, what are the next steps for both projects?
Anthony Hamilton: Essentially, it's re-entry of both wells. Our concept is to sell the gas at the wellhead. We’ve continued to receive strong interest. The model works — we bring the gas to the wellhead, and it’s the off-taker's responsibility to separate and clean it.
The scoping study confirmed the project is viable, and the approach we’re taking is also viable. Duncan Seddon & Associates, who did our evaluation, also noted that off-takers would likely use the hydrogen to power their on-site modular plants. That would help us achieve a better price, since we’d be selling helium and natural gas. Once we have flow and flow testing complete, we move to full-scale production.
Proactive: Tony, I hope you'll continue to keep us updated with your progress. Thank you very much for speaking with us today.