Pure Hydrogen wins long-term tenure, work program approval as it seeks to spin-off Windorah

Pure Hydrogen plans to spin-off its Windorah gas project into a new ASX-listed company have received a boost from the Queensland government.

The Windorah project. Pic: Pure Hydrogen

• Pure Hydrogen secures 15-year PCA from Queensland government for its Windorah gas project

• Company has also received extension for ATP 927 over the same area and approval for proposed work program

• Windorah to be spun-off into new ASX company – Eastern Gas – which will raise $8-10m in IPO

Special Report: Pure Hydrogen has secured long-term tenure over its Windorah gas project in the Cooper Basin – a key step in the near-term development strategy for its Australian gas assets ahead of a planned spinout and IPO later this year.

Pure’s wholly-owned subsidiary, Real Energy Queensland, was granted a 15-year Potential Commercial Area (PCA) from the state government covering the project along with an extension of the ATP 927 covering the same area to September 30, 2027.

PCAs provide companies with more time to evaluate a petroleum resource for commercial production and market opportunities.

The grant follows a 22-month regulatory approval process with Queensland’s Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development.

Pure Hydrogen (ASX:PH2) has also received approval for a proposed work program to develop Windorah.

“We are pleased to have secured the PCA, which provides long-term tenure for the Windorah Gas Project and supports the commencement of our near-term work program,” managing director Scott Brown said.

“These approvals follow a thorough regulatory engagement process and offer strong validation of the project's potential.

“With this milestone, we are well positioned to advance what could be a significant Australian gas development.”

The Windorah project. Pic: Pure Hydrogen

Windorah gas project

The 480km2 project in the prolific Cooper Basin is a basin-centred gas play where work to date has defined a best estimate (2C) contingent resource of 330 billion cubic feet of gas and a high estimate (3C) contingent resource of 770Bcf.

Key targets are the Cooper Basin Permian saturated tight sands comprising the Patchawarra, Toolachee and Arrabury sandstones.

This geology is defined by source rock maturity with the thickest section found in ATP 927.

PH2 also holds a pipeline licence for gas transportation between the Tamarama well area and Mt Howitt, which allows connection of Queenscliff and Tamarama wells to gas pipeline infrastructure connecting to Moomba, a major gas processing and transmission hub.

It has previously signed a tie-in and processing agreement with Santos in 2019 that contemplates the gas being transported and processed at Moomba.

Commercial discussions with Santos will be re-initiated to refresh the agreement.

The company is looking to spin-out its Australian gas assets into a new ASX-listed vehicle – Eastern Gas – to focus on the commercial rollout of its zero emissions vehicles and hydrogen infrastructure business.

Eastern Gas will look to raise $8-10m through an initial public offering to advance Windorah at a time when the Australian east coast is facing potential gas supply shortages.

This article was developed in collaboration with Pure Hydrogen, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Pure Hydrogen wins long-term tenure, work program approval as it seeks to spin-off Windorah