Buru Energy – 2H Resources – Natural Hydrogen and Helium activity update.
Buru Energy (Buru, Company) is pleased to provide the following operations update for its wholly owned hydrogen and helium business, 2H Resources.
2H Resources is a leading explorer for natural hydrogen and helium. Natural hydrogen is produced from underground accumulations in the earth and has the potential to supply low cost and very low carbon intensity hydrogen. It is often accompanied by commercially significant quantities of helium which also provides a pathway indicator for natural hydrogen accumulations.
2H Resources has been building a substantial portfolio of highly prospective acreage in South Australia, and now is pleased to be able to progress activity in Western Australia.
Thomas Nador, Buru’s CEO, commented:
2H Resources has been an integral adjacency to Buru’s core natural gas development activity leveraging our extensive geological and operational expertise.
“We are therefore delighted with the success of the adjacent operator in South Australia and the implications that has for our areas.”
We are also very pleased that the Western Australian Government has reopened the State for Special Prospecting Authority applications that has allowed us to apply for areas that we have identified as having high prospectivity for 2H Resources activity.
We look forward to continuing to grow the 2H Resources business and adding value for all
shareholders by innovative and timely portfolio enhancement.”
South Australia
Background
2H Resources’ initial focus has been in South Australia where is has been confirmed as the preferred applicant for the grant of six South Australian Petroleum Exploration Licences (PELs) and including two additional applications for Gas Storage Exploration Licences (GSELs). These licences are subject to a valid land access agreement being executed in accordance with the requirements of the Commonwealth Native Title Act 1993 (NTA). Negotiations for these land agreements are currently being progressed.
Recent activity
2H Resources has recently been confirmed as the preferred applicant for PELA 763 covering some 5,800 sq km to the northeast of the current application areas.
PELA 763 is in an area that is underlain by the Curnamona Geologic Province. The Curnamona Province consists of granite and volcanic rocks that are of similar age to those that underlie the recent highly significant Ramsay 1 hydrogen and helium discovery on the Yorke Peninsula by another operator. Radiometric mapping and the presence of uranium mining within PELA 763 indicate it is rich in radiogenic minerals that are linked to the generation of both helium and hydrogen.
Land access agreements for PEL 763 will be progressed in parallel with the initial six PELAs.
Western Australia application areas
2H Resources has also recently applied for six Special Prospecting Authorities with Acreage Option (SPA-AO’s) under the Petroleum and Geothermal Energy Resources Act 1967 (PGERA) in Western Australia.
These applications have been accepted by the Department of Mines, Industry Resources and Safety (DMIRS) in accordance with the PGERA as being valid and are under assessment.
These applications are the result of extensive geological research undertaken by 2H Resources technical team and follow the removal of the reservation on SPA-AO’s imposed by the Western Australian Government between 2021 and 2023.
Four of these SPA-AO’s are at 75% equity in partnership with Gehyra Flux Pty Ltd (Gehyra Flux) in an area covering ~20,000km² northwest of Perth adjacent to the margins of the Perth Basin where geological conditions are interpreted to be favourable for generation of helium and associated gases.
A further two SPA-AO’s (at 100% equity) are situated in the Goldfields area between Norseman and Kalgoorlie. These Goldfields areas are close to infrastructure and access to
market, and have optimal geological characteristics for the generation of helium and importantly have had previous strong indications of natural gas influxes during mineral drilling activity.
Upon the completion of the Assessment stage which includes Native Title negotiations and granting of the SPA-AO, 2H Resources will have six months to undertake a soil gas sampling program which will seek to identify areas of anomalously high gas flux which will then be high-graded for future exploration.
Following the completion of the SPA program, 2H Resources may apply to DMIRS for an Exploration Permit in these areas.
About Gehyraflux Pty Ltd
Gehyra Flux is a pure play private natural hydrogen company with a material holding of exploration license applications in South Australia and Western Australia.
Leveraging world leading technical capabilities, the company is aiming to become a leading natural hydrogen and helium explorer in Australia. The Company’s near-term activities are focused on working with Native Title Groups to negotiate Native Title Agreements ahead of license awards and exploration activities. In parallel, the Company is continuing to mature multiple exploration targets it has identified across its portfolio.
Gehyra Flux is a founding member of the Natural Hydrogen Association of Australia.
Highlights
- Confidence in the prospectivity of 2H Resources’ South Australian natural hydrogen and helium exploration portfolio enhanced with recent positive drilling results in adjacent areas with similar geological characteristics.
- 2H Resources has six Petroleum Exploration Licence (PEL) and two Gas Storage Exploration Licence (GSEL) applications in South Australia and has recently been confirmed as the preferred applicant for an additional area, PELA 763, covering some 5,800 sq km to the northeast of the current application areas.
- Exploration for natural hydrogen and helium on these application areas will commence following the execution of land use agreements that are currently under negotiation, and the subsequent granting of the PELs and GSELs.
- Buru has also been advised it is the successful applicant for six Special Prospecting Authorities with an Acreage Option (SPA-AO’s) adjacent to the Perth Basin and in the Goldfields area in Western Australia. These areas are highly prospective for helium and associated gases.
- 2H Resources is currently a 100% owned subsidiary of Buru Energy, and with the addition of these new areas to its portfolio continues to grow its substantial part of the value of Buru.
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