H3 Energy is ramping up its technical assessment of the Alinya project, pivoting its focus toward the lucrative helium and hydrogen potential within South Australia’s underexplored Officer Basin.
The company said it has commenced a targeted work program to evaluate the Milford and Milford East structures.
The move follows independent assessments by Sproule ERCE, which previously identified a massive 3U prospective resource of 209 billion cubic feet (Bcf) of helium and 1.2 billion kilograms of hydrogen at the nearby Rickerscote prospect.
While the Officer Basin has long been known for oil and gas shows, H3E is now hunting for high-value, low-volume components.
The current technical review will analyse whether the critical Alinya Formation mudstone seal and Pindyin sandstone reservoir extend southeast into the Milford structures.
H3 Energy CEO Nik Sykiotis said the program is a vital step in defining the true scale of the Alinya project.
“We are increasingly seeing the scale of the opportunity across the basis and our priority is to systematically define both the size of the system and the composition of the gases it may contain,” the CEO said.
“By taking a portfolio approach across multiple structures, we are positioning H3E to capture value across a range of potential gas streams, while maintaining a disciplined and technically driven exploration strategy.”
The increase in focus comes as global helium prices soar, driven by its essential role in a number of industrial sectors.
Unlike traditional natural gas, helium’s high market value means that even modest discoveries can be commercialised rapidly.
“The value of helium has increased dramatically in the global market recently and we are committed to finding as much as we can on our acreage,” Sykiotis said.
“Being a high value, low volume gas means that commercialisation is likely to follow soon after any success with the bit.”
The work program involves a detailed audit of existing geological and geophysical data, focusing on structural configuration and migration pathways.
The program forms part of a broader strategy to evaluate multi-commodity gas potential across H3 Energy’s South Australian portfolio.