Whitebark $2m placement fuels SA hydrogen-helium exploration

Whitebark Energy’s bold move into hydrogen and helium exploration through its takeover of King Energy has seen its share price surge 25 per cent hitting 1 cent per share, in a strong show of confidence from the market. The rally comes hot on the heels of Whitebark securing a $2 million capital raise at 0.0065 cents per share to help fuel its exploration plans.

To sweeten the placement, institutional and high net wealth investors were also offered one free-attaching option for every two new shares, exercisable at 1.5c with a two-year expiry.

The company will also convert $205,000 in related-party debts into shares. Adding to its financial momentum, Whitebark’s chairman Mark Lindh is doubling down on the company’s future and will invest $100,000 in the placement.

The slated takeover will give Whitebark control of King’s 70pc owned natural gas, hydrogen and helium Alinya energy project in South Australia’s Officer Basin. King also has an option to acquire the remaining 30pc of the project.

Whitebark will use its new cash flow to fund exploration at site and provide general working capital.

We are very pleased with the strong support received for the placement, particularly at such a critical point in our company’s long-term growth strategy.

Specialist remote sensing firm DiRT Exploration has already kicked off a high-tech remote spectroscopy study using advanced atmospheric analysis to detect and map potential hydrogen, helium and hydrocarbon emissions. The study should be able to pinpoint high spots by analysing the unique spectral and physical properties of the gases.

In May, Whitebark will launch a geochemical survey across its high-priority sites using autonomous gas sensors running month-long sampling to track gas concentrations and refine future drilling targets.

2D seismic surveys are scheduled for the second half of the year to provide a deeper, more detailed look at the underground structures. Discussions with its seismic contractors are already in advanced stages and Whitebark expects to soon lock in a preferred partner.

The company sees its acquisition of King as a game-changer. The deal will grant it access to one of Australia’s largest seismically defined onshore sub-salt energy basins that is already home to significant hydrogen and helium discoveries by Central Petroleum and Santos.

To cement the takeover, Whitebark agreed to transfer 100 million new Whitebark shares to King’s vendors at a deemed price of 1.2c together with 100m options exercisable at 5c a share in exchange for 100pc of the company. The deal is valued at $1.67m.

The company’s pivot toward geothermal, hydrogen and helium exploration seems to mark a new chapter in Whitebark’s growth plans. With strong investor backing and an acquisition that enhances its renewable energy portfolio, it appears to be positioning itself to take full advantage of Australia’s evolving energy market.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au