Whitebark fires up exploration at new SA hydrogen-helium project

With a firm early-March date set for settlement of Whitebark Energy’s acquisition of King Energy, exploration plans have gathered momentum at King’s Alinya hydrocarbon-hydrogen-helium (3H) project in South Australia’s Officer Basin.

Whitebark says the acquisition will help to consolidate the company’s efforts to uncover commercial quantities of the valuable green energy sources.

Whitebark has agreed to transfer 100 million new Whitebark shares to King vendors at a deemed price of 1.2 cents together with 100 million options exercisable at 5c a share, in exchange for 100 per cent of the company.

The all-scrip deal values the transaction on paper at $1.67 million.

Whitebark is thrilled at the prospect of being able to work collaboratively with the dynamic team at King Energy on developing the Alinya project and is fully supportive of their strong desire to advance the project.

The Alinya project covers almost 20,000 square kilometres across two licences. It is widely regarded as prime real estate to explore for naturally occurring white hydrogen, helium and natural gas.

The area comprises comparable source rocks and geological characteristics to the Southern Amadeus Basin immediately to the north, which is well known for significant oil and gas discoveries and proven hydrogen and helium reserves found in deep formations.

More than 20 prospects have been identified at Alinya including the Rickerscote, Milford and Milford East sites, which management says contain some of Australia’s largest undrilled, seismically defined sub-salt structures.

Specialist remote sensing company DiRT Exploration has started a remote spectroscopy study designed to identify the presence, location and relative abundance of potential hydrogen, helium and hydrocarbon emissions using the atmospheric gases’ unique spectral and physical properties.

Armed with the study findings, the company will then put boots on the ground. It will begin a geochemical survey in May targeting high-priority sites. Cutting-edge autonomous gas sensors will take centre stage, conducting month-long, continuous sampling to deliver important insights into gas concentrations and future targets.

The big guns will then be unleashed, with 2D seismic surveys expected to be run over the grounds in the second half of the year. Management says discussions with potential seismic contractors are already in their advanced stages, with a preferred partner expected to be announced soon.

King Energy director Richard King said: “The Alinya project is entering an exciting period of accelerated exploration activities commencing immediately. The next several stages of activity will mature a high-value portfolio of drill-ready prospects to be tested at the first possible opportunity.”

The project is remote at 150km west of Cooper Pedy. However the company believes its proximity to Santos Ltd’s nearby Moomba processing facility means any future 3H discoveries at Alinya could be brought into production relatively quickly and cheaply.

The South Australian government is relentlessly pushing forward with its bold hydrogen strategy, which means commercial discoveries of the naturally occurring gas are poised to become increasingly valuable.

When Whitebark-King acquisition has settled, the Alinya project will have access to more significant funding for exploration. Given the massive land area and the prolific numbers of sub-salt structures at site, Whitebark may one day find itself in the box seat to help deliver South Australia’s mission to decarbonise the State.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au