Global Oil & Gas picks-up helium exploration pace at NT permit amid tight market
Global Oil & Gas is looking to discover and produce helium from its NT permit and process it in Darwin before exporting overseas.
Global Oil & Gas (ASX: GLV) claims helium exploration across its Northern Territory exploration licence is “gaining momentum”, as the global helium market remains in undersupply.
In this morning’s announcement, Global Oil & Gas stated its 2020 exploration work program is “progressing well”, with Global Oil & Gas now completing the design of its planned geochemical survey.
Global Oil & Gas hopes the survey will detect an active helium system across its EP127 permit.
To get the survey underway, Global Oil & Gas has begun permitting consultations with the NT Central Land Council and the NT Government to ensure COVID-19 guidelines are followed.
Helium exploration program
Global Oil & Gas’ exploration program is designed to prove the charge of helium and better define targets in addition to firming up already identified prospects and leads.
The company said it has analysed existing data sets, integrated interpretations as well as applying new thinking in its search for helium across the tenement block.
Exploration will involve regional surface and remote sensing mapping validated by field work; interpretation of integration of latest gravity, magnetics and seismic data; undertaking a geochemical survey to establish hydrocarbon and helium charge across EP127.
Results from these activities will be integrated and underpin planning for the 2021 work program.
Helium market
As a high-value speciality gas with unique qualities, helium has been classified a strategic element.
The market is in undersupply and the gas commands prices 100 times higher than natural gas.
Helium is critical to a lot of technologies including the manufacture of MRIs, semi-conductors, fibre optic cables, and hard discs, as well as being used in cooling, space exploration, rocketry, lifting and high-level science.
To-date, most of the world’s helium is extracted as a by-product of natural hydrocarbon gas production.
About 3% of the world’s helium is produced in Australia, with the nation consuming about the same amount.
All of Australia’s helium is processed at the BOC plant in Darwin to an A Grade liquid helium – equating to 99.995% helium.
This helium is sourced from the offshore Undan-Baya gas field. The helium accounts for 0.1-.03% of the raw gas that is fed to the LNG plant.
Global Oil & Gas pointed out the gas field was in decline, providing an opportunity for the company to fill the gap.
The company would look at transporting any helium produced from its permit to the BOC plant for further purification and export overseas.