Georgina Energy PLC (LSE:GEX) told investors it has signed an agreement with Halo Capital Investments to potentially fund the Hussar and Mt Winter helium, hydrogen and natural gas projects in Australia.
The memorandum of understanding (MOU) with Halo gives the investment firm a 12-month option to acquire rights to 100% of production from the projects.
Under the terms, Georgina’s subsidiary Westmarket Oil & Gas will be able to sell gas at the wellhead, while Halo will finance and manage processing facilities, storage and transport.
It allows for pre-pay financing and optional development funding, with Georgina’s sunk costs to be recovered.
"Georgina now has two off-take agreements in place, which provide a clear step towards commercialisation of the company's assets and further support of its wellhead sales strategy," chief executive Anthony Hamilton said.
"With the imminent granting of the Hussar drilling permit and the completion of the 100% acquisition of the Mt Winter project, the company is in a strong position for future growth."
The company statement also confirmed that the Department of Mining, Petroleum and Exploration has now accepted all lodgement requirements for exploration permit EP513 at Hussar.
Final drilling approval is now awaited, after which site preparation works including airstrip repairs, road access and pad construction will commence.