High Peak Royalties reported steady royalty income of A$168,176 in Q3 2025, while progressing exploration and infrastructure developments across its helium, hydrogen, and gas assets.
- Q3 royalty receipts total A$168,176 with net cash outflows of A$36,835
- Ongoing farm-out discussions for helium-hydrogen prospects in Northern Territory
- Infrastructure upgrades at Gippsland Basin’s Longtom Gas Field support potential restart
- Regulatory approval process advancing for South Australian geothermal assets
- Cash balance stands at A$301,209, providing nearly 8 quarters of funding runway
Royalty Income and Cash Position
High Peak Royalties Limited (ASX, HPR) has released its September 2025 quarterly report, revealing a steady stream of royalty income totaling A$168,176. Despite this, the company recorded net cash outflows of A$36,835 for the period, primarily due to operating expenses and director fees. With a closing cash balance of A$301,209, High Peak maintains a solid financial footing, with an estimated funding runway of nearly eight quarters based on current cash flows.
Northern Territory, Helium and Hydrogen Prospects
The company continues to monitor its 1% royalty interests in the Amadeus Basin, focusing on the Jacko Bore / Mt Kitty, Dukas, and Zevon exploration permits. These sites hold significant potential for helium, hydrogen, and natural gas. Central Petroleum, the operator, is actively seeking partners to co-fund upcoming drilling campaigns, particularly at Jacko Bore / Mt Kitty, which remains a strategic priority. Farm-out discussions at Dukas are ongoing, aiming to secure joint venture funding while minimizing capital exposure. Zevon is also positioned as an emerging sub-salt helium-hydrogen target, with efforts underway to attract third-party investment.
Gippsland Basin, Longtom Gas Field Developments
High Peak’s 0.3% royalty interest in the Longtom Gas Field benefits from recent operational improvements by Amplitude Energy at the Orbost Gas Processing Plant. The plant’s throughput has increased to near nameplate capacity, with plans to expand further pending regulatory approval. This enhancement supports the potential restart of both the Patricia Baleen and Longtom fields. Additionally, Seven Group Holdings and Amplitude Energy have signed a non-binding Memorandum of Understanding to explore commercial pathways for Longtom’s recommissioning, leveraging existing infrastructure to expedite production resumption.
Queensland Gas Production and Monitoring
Royalty receipts from the Peat Gas Field in Queensland amounted to A$68,405 for production recorded in the previous quarter. Production levels have remained robust, averaging 11.2 terajoules per day, consistent with expectations. High Peak also continues to track developments on its royalties in PL171 and ATP574P, operated by Shell subsidiaries, maintaining a watchful eye on operational progress.
Geothermal Assets and Regulatory Progress
High Peak’s geothermal portfolio in South Australia, held through its subsidiary Torrens Energy, is undergoing a critical regulatory approval process. The company is working closely with Northstar Energy and the Department for Energy and Mining to secure Ministerial Consent required for the transfer of ownership of geothermal exploration licences. Recent meetings with government officials have advanced this process, which is essential for continuing the development of South Australia’s geothermal energy potential. The company is also pursuing retention of exploration licence applications to maintain strategic acreage.
Corporate and Strategic Outlook
No material corporate changes were reported during the quarter. High Peak remains engaged with operators across its portfolio and focused on advancing its strategic objectives. The company’s diversified royalty interests across multiple energy commodities and jurisdictions position it well to capitalize on emerging opportunities in helium, hydrogen, natural gas, and geothermal energy.
Bottom Line?
As High Peak navigates regulatory hurdles and partner negotiations, its steady cash flow and diversified royalties set the stage for potential growth in emerging energy sectors.
Questions in the middle?
- Will farm-out agreements in the Amadeus Basin materialize soon to unlock drilling activity?
- How quickly can regulatory approvals for geothermal assets in South Australia be finalized?
- What impact will infrastructure upgrades at Orbost have on Longtom’s production restart timeline?