Constellation (CR1) Confirms Methane, Helium in New Permit SPA-0143

Constellation Resources (ASX: CR1) has confirmed the presence of methane, helium, and ethane in its newly awarded exploration area SPA-0143, based on CSIRO analysis of a diamond drill hole. The finding moves a historical gas seep from anecdote to quantified prospectivity. The next step depends on permitting approvals and planned ground surveys in the second half of 2026.

SPA-0143: A Gas System Supported by Core Evidence

The core technical evidence comes from CSIRO examination of diamond drill hole WHRD021. Gas was observed venting from the collar over an eight-month period. Sampling revealed repeated venting with high air-corrected values of up to 97% methane and 0.24% helium. The presence of ethane (C2H6) further supports a thermogenic or mixed gas system rather than a purely biogenic source.

CSIRO Analysis Validates Historical Seep

The sustained gas flow over eight months indicates that the formation is actively feeding gas to surface. Air-correction removes atmospheric contamination, so the measured values reflect true reservoir composition. 97% methane plus measurable helium and ethane aligns with the characteristics of a conventional gas accumulation that may also host natural hydrogen.

The CSIRO has previously reported that its study results from the Edmund-Collier project consistently support the generation and migration of hydrogen, helium, and associated gases within historical diamond drill holes. WHRD021 extends that pattern to SPA-0143.

AMOCO Ignition as Supporting Data

AMOCO drilling in the same region intersected combustible gas at approximately 300 metres depth, leading to a surface ignition event. This historical data point, when combined with the CSIRO findings, suggests an active gas system with sufficient pressure and volume to reach the surface.

The Permit Pathway: Preferred Applicant Status Granted

Constellation Resources has secured preferred applicant status from the Department of Mines, Petroleum and Energy (DMPE) on 19 May 2026 for STP-SPA-0143, which adjoins the existing permit SPA-0119. Formal tenure is the next administrative step.

DMPE Decision on 19 May 2026

Granting preferred applicant status does not immediately unlock field work, it clears the way toward a formal exploration licence. The company now holds three linked permits for its NatH2 play: SPA-0118, SPA-0119, and SPA-0143.

Native Title Approvals as Gatekeeper

Native title approvals have been obtained for SPA-0118 and SPA-0119. On-ground activities for these two permits are expected to be approved shortly. SPA-0143 will require its own native title agreement before surveys can start.

Catalysts and Risk Factors for 2H26

The company plans to conduct ground gas surveys and isotope work in the second half of 2026, subject to final approvals. These surveys will test for hydrogen, helium, and methane at surface and distinguish between biogenic and thermogenic sources.

Ground Gas Surveys and Isotope Work

Field surveys are the critical catalyst. If elevated hydrogen concentrations consistent with the CSIRO’s previous results are confirmed, the project could move toward drill targeting in 2027. The isotope work will clarify whether the gas source is deep thermogenic (favourable for helium and hydrogen) or shallow biogenic (less favourable).

What Would Invalidate the Thesis

Failure to obtain on-ground approvals for SPA-0118, SPA-0119, or SPA-0143 would delay surveys. The 2H26 timeline depends on DMPE consent and native title clearances.

Isotope results that indicate a purely biogenic methane source would reduce the likelihood of associated hydrogen and helium, since biogenic systems typically lack the deep source rock needed for these gases.

Low flow rates on surface could indicate a depleted or tight reservoir that does not support commercial extraction.

Broader Context: Edmund-Collier Footprint and Ularring

Constellation Resources holds a total natural hydrogen project area of 87,602 square kilometres across the Edmund-Collier, Yerrida, and Ashburton basins. The company confirmed hydrogen and helium at its Edmund-Collier project in October 2025 from preliminary testing of historical diamond drilling samples by the CSIRO.

87,602 km² Across Three Basins

This large footprint provides multiple targets for the emerging natural hydrogen play. The confirmation of gas in SPA-0143 adds a third data point to the regional map, after earlier CSIRO results from Edmund-Collier.

Ularring Copper-Gold Assays Pending

Beyond the NatH2 play, Constellation completed reverse circulation drilling at its Ularring copper-gold project in the March 2026 quarter. Assay results are pending. This provides a second catalyst stream independent of the gas work, though it does not alter the hydrogen/helium thesis.

For traders building a commodities analysis watchlist, Constellation Resources offers early-stage exposure to the natural hydrogen theme, with the added kicker of helium – a critical mineral with limited supply. The permit footprint and confirmed gas flow differentiate it from pure exploration stories that lack well-tested data. The next two quarters will determine whether that data translates into advancing field work or stalls on regulatory ground.