Georgina Operational Update - Has Speculation created an Opportunity ?
Georgina updated the market on plans for its two highly prospective Helium/Hydrogen Projects. The Hussar Project is considered to be one of the most potentially significant resource basins in the Asia Pacific region. In the case of Helium, Georgina's Helium resource potential is some 42% larger than peer Helium1
It's been a bumpy ride for Georgina Investors since IPO due to some negative speculation in the market. The company believe the speculation is wholly un-founded to the point where they put out a statement as follows:
"Georgina Energy is aware of a number of recent blog and social media posts that contain a number of false and misleading statements made by uninformed third parties.
The Company views that the making of such false and misleading statements is damaging to both investors and the market, and constitutes market abuse under the UK Market Abuse Regulation. Georgina is in the process of reporting such statements to the Financial Conduct Authority."
The company have in fact since released an Operational Update as follows:
Hussar EP513
This is the companies wholly-owned license granted in October 2023. The Hussar Project is considered by independent consultants to be one of the most potentially significant resource basins in the Asia Pacific region due to its significant Helium, Hydrogen, Oil & Natural Gas potential. The plan at Hussar is to drill a deeper well (via re-entry) in December 2024
The company reported in their update that company representatives will be conducting a site visit late November. The preliminary site visit with related parties such as Traditional Land Owners will provide reports to DEMIRS in support of its drilling application. In addition, the Hussar resource upgrade and the reprocessing of the seismic data continues with the revised mapping, all of which will also be submitted to DEMIRS.
The company remains on target to commence operations in December with casing and pressure testing a pre-cursor to re-entry.
On conclusion of a successful drilling campaign and subsequent testing, the company plan to sell at the 'well-head' with any third-party off-taker being responsible for the proposed separation/processing facility development costs. This means Georgina should not have to go back to the market for funding, for such a facility.
Scoping Study
In relation to the above, the company is advancing a comprehensive conceptual scoping study with an independent international consultancy for a large-scale separation plant for hydrogen, helium and natural gas products at or near the Hussar site. The study will include capital and operating costs estimates and concept estimates of the revenue from gases produced at the wellhead to be sold to third parties under the offtake agreement. The study is anticipated to be completed in January next year.
Mt Winter EPA155 (“Mt Winter”)
Georgina has the right to earn-in an interest of 75% of the MT Winter prospect with the potential to reach a 90% interest. Georgina, via its subsidiary is the Manager and has Operatorship of MT Winter.
The Mount Winter Prospect hosts un-risked 2U Prospective (Recoverable) Resources of c.148 BCFG of helium and c.135 BCFG of hydrogen, and c.1.22 TCFGE (Trillion Cubic Feet Equivalent) of hydrocarbons.
Following the successful meeting in Alice Springs in September, the Company has been advised by its Indigenous Relations Consultant that the CLC ratification of the Traditional Owners approval of the granting process for the Mt Winter EP(A)155 project is anticipated to complete in December 2024. Georgina continues to reprocess and remap the 2D seismic data in line with its farm- in obligations.
Fully Funded
Despite some additional speculation following the release of the companies interim results around the companies cash position, the company have confirmed they are fully-funded for the Hussar drill-programme and pre-drill farm-in commitements for Mt Winter. The interim results were made up to the 31st July 2024 and as such did not include the £4M cash raised at IPO which was subsequently received in August.
Significant Helium, Hydrogen & Natural Gas Potential
Georgina’s Hussar and MT Winter prospects combined offer investors exposure to potentially globally significant helium and hydrogen resources with an additional potential resource of c.3TCF of natural gas.
In the case of helium, the combined projects resource potential is c.303BCF, to put that into context that’s some 42% larger than Helium1 currently capped at £61M, Georgina £8M
Has negative speculation made by uninformed third parties, therefore created an opportunity to gain exposure to one of the potentially largest and most exciting helium/hydrogen drills to come to the Junior markets this year at c.40% discount to the IPO price?