One structure, known as Mt Kitty was previously drilled to a depth of 2259m hitting natural gas, hydrogen and helium. The find was subsequently flow tested at 500,000 cubic feet per day (mscf/d) for a contingent (2C) resource of 65 billion cubic feet (Bcf) of natural gas, 31 Bcf of hydrogen and 39 Bcf of helium.
Dukas, an even more substantial prospect in the area with world class subsalt potential holds an estimated P50 resource of 1.2 trillion cubic feet (Tcf) of natural gas, 253 Bcf of hydrogen and 200Bcf of helium. Farmout discussions are currently underway to drill a second well after the initial Dukas-1 well was suspended at 4,704m due to overpressure in the salt seal.
When King Energy picked up its similar looking grounds two years ago it was also fortunate enough to acquire detailed 2D seismic data over the permits.
The company now believes there may be as many as 20 prospects to chase up which include three standout opportunities due to their massive 200m thick subsalt seals sitting at a depth of 1200 to 2000m, estimated to hold a P50 resource of between 1 and 4.5 Tcf of gas. Since these targets have never previously been drilled, the company regards them as outstanding opportunities for discovery.
Whitebark Energy chairman Mark Lindh said: “I believe the acquisition is significant outcome for the company as it provides exposure to the fast-growing white hydrogen industry, in conjunction with high demand and high-priced helium, and hydrocarbons to fuel Australia’s energy transition requirements.”
Adding to Lindh’s comments, King Energy director Richard King noted the acquisition of King Energy by Whitebark reflected the success of the company’s strategy to build a 3H platform. King shareholders will now have access to focused assets across Australia and a fast track to exploration drilling, highlighted by Whitebark’s ability to access capital markets which could drive the portfolio to rapid maturity.
Should future drilling at Alinya hit paydirt, the project’s proximity to the Moomba Hub – a major gas process and transmission centre in South Australia – would greatly reduce its capital requirements for shifting molecules to market.
King Energy is managed by seasoned oilman Richard King who has spent much of his career in the midstream oil and gas sector, most recently as head of country for KUFPEC and prior to that with Otto Energy, Chevron and Woodside.
An aerial view of Santos Oil’s Moomba processing facilities close to King Energy’s Alinya hydrocarbon, hydrogen and helium project in the Officer Basin 150km west of Cooper Pedy in South Australia. Whitebark Energy is acquiring King Energy in an all-scrip deal worth $1.7 million.
Whitebark is also headed up by someone with deep roots in the hydrocarbon sector. As the company chairman, Lindh is also the principal of Adelaide-based AE Advisors and has been instrumental in providing corporate services to some of the biggest energy groups in Australia including pipeline and power generator, ATCO.
His credentials have been further elevated from a stint advising ASX-listed Beach Energy – which now controls 20 per cent of the gas flowing from Queensland’s Cooper Basin together with a non-executive directorship at Bass oil.
Although Whitebark is keen to add King Energy’s Alinya 3H project in South Australia to a list of existing clean energy projects – including a geothermal play in Queensland – the company also has its hands on 100 per cent of the substantial onshore Warro natural gas project, 200km north of Perth in Western Australia.
In 1977, the Warro-1 well, drilled by WAPET – a joint venture established in 1952 between Caltex and Ampol – uncovered a significant natural gas discovery. The well intersected a 390-metre gas column within the Yarragadee Formation revealing an estimated 1 to 3 trillion cubic feet (Tcf) of recoverable natural gas.
Since then, extensive 3D seismic work has been undertaken to further understand the gas-bearing structure which identified tight gas, potentially accessible with modern fracking techniques. A recent moratorium by the West Australian Government 12 months ago, on a practice that some have previously considered controversial, means the project is once again in the box seat to be jump started.
Indeed Warro is so prospective that King has identified access to the gas field and the potential deeper Permian sands which have proven prolific across the Perth Basin as a primary motivator for agreeing to join forces with Whitebark and a major potential value creator for its shareholders.
With the burgeoning South Australian hydrogen industry and eastern Australia energy market driving massive demand, Whitebarks’s expanded portfolio of clean energy projects in hydrogen, helium and natural gas now appears to offer the company genuine and material value generating opportunities. 2025 could prove to be a transformative year for both Whitebark and King Energy.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
