Prominence Energy targets natural hydrogen-helium space with nine-licence Gawler deal in SA
Prominence Energy (ASX: PRM) has entered into an agreement that will see it join the rush to explore for high-value natural hydrogen and helium in South Australia.
The company has entered into a binding agreement to acquire Gawler Group Holdings, including its 100% interest in a total of nine petroleum exploration licence applications (PELAs) that contain the Northern Hinge and Eyre projects.
The deal will see Prominence join the likes of Thor Energy (ASX: THR) and D3 Energy (ASX: D3E), which are seeking to follow up Gold Hydrogen’s (ASX: GHY) world-class hydrogen and helium discoveries at Ramsay in SA.
Emerging space
Chair Ian McCubbing said the acquisition of the Gawler project would provide Prominence and its shareholders significant exposure to the emerging natural hydrogen space.
“Several recent investments in natural hydrogen companies by large multinationals and private equity will see a raft of activity both in Australia and internationally,” Mr McCubbing said.
“Prominence has substantial leverage to any success by others as well as through organic exploration and appraisal of its large portfolio in SA [and] we look forward to closing the transaction and getting on the ground as soon as possible.”
Diversified portfolio
The acquisition delivers Prominence a diversified exploration portfolio covering a number of hydrogen and helium source systems with material resource potential.
The company has begun preparations for exploration programs aimed at maturing prospects ahead of drilling decisions.
Studies of localised uranium deposits in several areas throughout the Eyre project have provided evidence for the generation of hydrogen (and helium) as a by-product of mineralisation.
A large conductivity anomaly identified from regional magnetotelluric data through the project area may also facilitate the migration of primordial hydrogen to surface.
Consideration terms
Prominence will issue Gawler 475 million shares in the company for 100% of the issued capital of Gawler Group.
Gawler will also receive 400 million unlisted options exercisable at $0.007 within four years of being issued, along with 475 million performance rights in two tranches.
The deal is subject to shareholder approval and the satisfaction of a number of conditions precedent including due diligence and the completion of a $1.75m capital raising.