Whitebark Energy targets major hydrogen-helium project with King Energy acquisition

Whitebark Energy (ASX: WBE) is on track to acquire one of Australia’s largest potential hydrogen and helium projects after signing an agreement with unlisted public company King Energy.

Under the implementation agreement, Whitebark will acquire all the issued securities of King Energy by way of separate off-market offers.

Executive director Mark Lindh said the deal would provide Whitebark with access to significant prospective resources for naturally occurring hydrogen and helium.

‘Positive outcome’

“The acquisition of King Energy is a very positive outcome for the company, offering access to some of Australia’s largest seismically defined onshore structures,” Mr Lindh said.

“The exploration opportunities provide Whitebark with exposure to the fast-growing white hydrogen industry, in conjunction with high-demand, high-priced helium and hydrocarbons to fuel Australia’s energy transition requirements.”

King holds a 70% interest in Officer Energy, which indirectly owns 100% of two petroleum exploration licences comprising 19,467 square kilometres in the Officer Basin in South Australia.

It also controls the operations of the Alinya project that comprises more than 20 identified prospects, the largest of which are the Rickerscote, Milford and Milford West targets.

Underexplored region

King director Richard King said the Officer Basin is a relatively underexplored frontier basin that offers the potential for significant prospective resources in large seismically defined structures.

“With the Whitebark acquisition of King Energy, it is expected that exploration activities will commence immediately, targeting drilling as soon as Q1 2026,” Mr King said.

“The company is expecting onshore exploration to be low-cost, with conventional reservoir depths between 1,200m and 2,000m.”

Existing intersections

Studies of existing well intersections in the basin demonstrate that all play elements necessary for the discovery of white hydrogen, helium and hydrocarbons are present.

The implied value of the acquisition is $1,669,700.

Completion of the offers will trigger an option for King Energy to acquire the remaining 30% interest in the Alinya project, with a consideration of 2.955 million Whitebark shares and the same number of associated options.

Whitebark has confirmed it intends to undertake a capital raising early in 2025 to provide funding for exploration activities.