How High Peak Royalties Turned Geothermal Assets into A$2M in NorthStar Shares

NorthStar Transaction Finalised

High Peak Royalties Limited (ASX, HPR) has successfully completed a significant corporate milestone by transferring its remaining 80.01% interest in Torrens Energy (SA) Pty Ltd to NorthStar Energy Limited. This transaction, which required ministerial consent from South Australia's Department of Energy and Mining, culminated in High Peak receiving an additional 6.25 million fully paid ordinary shares in NorthStar before the end of the December quarter. The company now holds a total of 12.5 million NorthStar shares, representing a consideration valued at approximately A$2 million based on the issued share price of A$0.16.

This deal effectively finalises the disposal of High Peak’s geothermal exploration licences (GELs and GELAs) previously held through Torrens Energy, while allowing the company to retain a continuing royalty interest over these licences. The Board expressed satisfaction with the transaction, highlighting that it has restored value to assets that were previously impaired to nil, thereby enhancing High Peak’s asset base with minimal net expenditure.

Financial and Operational Highlights

During the December 2025 quarter, High Peak reported gross royalty receipts of A$247,341, including US royalty income of A$103,172. Despite these receipts, net cash outflows after operating expenses amounted to A$127,657, reflecting ongoing costs such as director fees and statutory payments. Notably, the company paid A$200,000 to the South Australian Department of Energy and Mining to fully cash back the rehabilitation security bond for the Torrens Energy licences prior to their transfer.

High Peak’s cash position at quarter-end stood at A$318,000, providing an estimated 2.5 quarters of funding based on current operating cash flows. The company continues to monitor its diverse royalty portfolio, which spans Australian gas fields in Queensland, Victoria, and the Northern Territory, as well as interests in the United States.

Portfolio and Project Updates

Among the portfolio highlights, High Peak is tracking progress on its Amadeus Basin royalties in the Northern Territory, where Central Petroleum is advancing sub-salt exploration permits with potential for gas, helium, and hydrogen discoveries. A conditional sale of these permits to Georgina Energy Plc is underway, with drilling planned for mid-2027.

In Victoria, the Longtom Gas Field remains a focus, with Amplitude Energy advancing the Patricia Baleen Restart Project aimed at resuming production and exploring gas storage opportunities. Engineering studies and lease conversion applications are in progress, with a production restart decision expected in the current financial year.

Queensland’s Peat Gas Field continues to generate royalty income, although production was somewhat weaker in the quarter due to operational interruptions. High Peak also maintains royalty interests over permits operated by major players such as Shell and Santos.

Governance and Corporate Developments

The quarter saw a board change with the resignation of Director David Croll and the appointment of Jarrod White, a long-time company associate who has served as CFO and advisor since 2014. This leadership update aligns with High Peak’s strategic focus on leveraging its royalty portfolio and capital expertise.

With the completion of the NorthStar transaction, High Peak no longer holds direct exploration assets but remains exposed to a broad range of royalties across multiple jurisdictions. The company continues to engage actively with operators and permit holders to monitor developments and maximise value from its royalty interests.