Whitebark Faces Funding Pressure Amid Ambitious Hydrogen and Renewables Expansion
Whitebark Energy has secured over 90% of King Energy, advancing exploration at the Alinya Project in South Australia while repositioning its Warro Gas Project towards renewable energy.
- Acquisition of over 90% of King Energy securities and compulsory acquisition underway
- Initiation of soil gas survey using advanced IVY sensors at Rickerscote Prospect
- Planning for 2D seismic infill and exploration drilling targeted for second half of 2026
- Completion of 90% sale of Wizard Lake asset to Conflux, retaining 10% interest with stable production
- Warro Gas Project realigned as a renewable energy initiative aligned with Western Australia’s net zero goals
Strategic Acquisition Bolsters Whitebark’s Energy Portfolio
Whitebark Energy Limited (ASX: WBE) has taken a decisive step in expanding its footprint in Australia’s emerging hydrogen and helium sectors by acquiring over 90% of King Energy securities, with compulsory acquisition proceedings now underway. King Energy holds a 70% stake in the Alinya Project, one of Australia's largest prospective onshore sub-salt structures in the Officer Basin, South Australia, with an option to acquire the remaining 30%. This acquisition significantly enhances Whitebark’s asset base and positions it at the forefront of the country’s energy transition.
The Alinya Project is notable for its potential to produce white hydrogen, helium, and hydrocarbons, with prior seismic data defining large undrilled prospects. Whitebark has initiated a soil gas survey at the Rickerscote Prospect using cutting-edge IVY gas sensors from Axiom Sensing to detect hydrogen and hydrocarbon emissions. This survey, scheduled for July 2025, aims to de-risk the project and refine drill targets ahead of a planned 2D seismic infill program in the fourth quarter of 2025.
Exploration and Production Update
Exploration drilling is targeted for the second half of 2026, pending regulatory approvals, marking a critical milestone for Whitebark as it seeks to unlock the vast resource potential estimated at 710 million kilograms of white hydrogen, 97 billion cubic feet of helium, and 153 million barrels of oil equivalent at Rickerscote. The company’s strategy, dubbed the 3H Strategy, focuses on delivering hydrogen, helium, and hydrocarbons as part of Australia’s energy future.
Meanwhile, Whitebark has completed the 90% sale of its Wizard Lake oil asset in Alberta, Canada, to Conflux, retaining a 10% working interest. The asset continues to produce steadily, with approximately 40 barrels of oil and 111 barrels of oil equivalent of gas per day, contributing to Whitebark’s cash flow stability. This divestment aligns with the company’s focus on strategic growth areas while maintaining a revenue base from conventional production.
Renewable Energy Pivot at Warro Gas Project
In Western Australia, Whitebark is realigning its Warro Gas Project towards renewable energy, consistent with the state’s net zero by 2050 climate policy. The project’s location offers multiple energy streams, and the company is developing a work program to explore renewable options, including beneficial gas production. This strategic pivot leverages the expertise gained from the King Energy acquisition and reflects Whitebark’s broader commitment to sustainable energy solutions.
Financial Position and Outlook
As of 31 March 2025, Whitebark held a modest cash balance of AUD 0.372 million and is actively undertaking capital raising efforts to support ongoing exploration and operational activities. The company reported stable production revenue from its retained interest in Wizard Lake, but the low cash position underscores the importance of successful funding to maintain momentum.
Chairman Mark Lindh highlighted the quarter as pivotal, emphasizing the integration of King Energy’s technical teams and the advancement of exploration activities. The company’s forward-looking approach aims to deliver long-term shareholder value through disciplined exploration and investment in sustainable energy resources.
Bottom Line?
Whitebark’s strategic moves position it as a key player in Australia’s hydrogen and helium sectors, but near-term funding and exploration risks remain.
Questions in the middle?
- How will the results of the upcoming soil gas survey and 2D seismic program influence drilling plans and resource estimates?
- What are the prospects and timeline for securing regulatory approvals for exploration drilling in the Officer Basin?
- How successful will Whitebark’s capital raising efforts be in supporting its ambitious exploration and renewable energy initiatives?
