Georgina Energy plc (LSE:GEX) has secured confirmation that Harlequin Energy Ltd will fully fund drilling and development activities at the Hussar EP513 prospect in Western Australia under a non-dilutive structured offtake financing arrangement. The package includes complete funding for the Hussar 2 exploration well, associated site infrastructure, and a US$25 million offtake facility, allowing the project to advance without issuing new equity.
Operational and financial highlights
Under the agreement, Harlequin has appointed Schlumberger Oilfield UK Limited to work alongside Georgina’s drilling consultant, Aztech Well Construction, on the planning and execution of the Hussar 2 well. The drilling programme is expected to run for around 50 days and is scheduled to take place during 2026.
Georgina has also reported a material upgrade to the project’s potential, with revised prospective recoverable resources at Hussar increasing by 30%. Updated estimates now stand at 283 BCF of helium, 315 BCF of hydrogen and 2.9 TCF of hydrocarbons. The uplift strengthens the strategic importance of Hussar within the company’s broader portfolio, alongside the Mt Winter prospect and recently acquired assets, as Georgina seeks to establish itself as a meaningful participant in helium, hydrogen and natural gas markets while avoiding shareholder dilution.
Despite the positive funding and resource developments, the investment outlook remains constrained by weak financial fundamentals. The company is pre-revenue, with widening losses, accelerating cash burn and negative equity, while share price technicals remain bearish, with the stock trading below key moving averages and showing negative momentum. Corporate progress around approvals, offtake arrangements and financing provides some counterbalance, but does not yet fully offset the financial and market risks.
More about Georgina Energy
Georgina Energy plc is an energy exploration and development company focused on building a position in helium and hydrogen production, alongside natural gas. Through its wholly owned Australian subsidiary, Westmarket O&G, the company holds a 100% working interest in the onshore Hussar prospect in Western Australia (EP513) and, subject to completion, the Mt Winter prospect in the Northern Territory (EPA155). Its strategy is aimed at capitalising on tightening global supply-demand dynamics in helium and hydrogen markets.
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