Prominence Energy targets mid-2027 drilling for helium, hydrogen

Helium and hydrogen are among the most sought-after industrial gases globally. Helium is critical to the medical sector, while natural hydrogen has been identified as a key to modern renewable energy solutions. Supply constraints for helium in particular are a major concern for Australia.

Local explorers have started to uncover significant resource potential. South Australia has attracted explorers from across the globe. One of those at the forefront is Prominence Energy (ASX:PRM), which is bringing unique expertise with state-of-the-art technology to unlock drilling targets.

Led by COO Dr Krista Davies, Australia's first PhD specialising in natural hydrogen exploration, Prominence took a major position in the local natural hydrogen and helium race when it entered a binding agreement to acquire all of the issued capital of Gawler Group Holdings in December 2025. That deal gave the company a 100% interest in a total of nine petroleum exploration licence applications (PELAs) containing the Gawler hydrogen project, including the Northern Hinge and Eyre prospects.

The Gawler project covers roughly 64,000 square kilometres, giving Prominence district-scale exposure to multiple geological play types across one of Australia's most prospective emerging natural hydrogen and helium provinces.

Using the latest ideas, Prominence has made significant advances in exploring its holdings and is now on track to drill its first wells in mid-2027. The company recently completed a major gravity and magnetic inversion and interpretation across the Eyre and Northern Hinge projects.

Dr Davies said the results confirmed key elements of the geological model and identified new targets to follow up.

"We are continuing to tick the boxes towards drilling. The completed geophysical work confirms much of our existing interpretation, strengthens several leads and has identified new opportunities across Eyre and Northern Hinge," she said.

"With the Eyre prospective resources review now underway and Northern Hinge advancing, our focus is on ranking the best drilling opportunities and maintaining momentum towards a disciplined mid-2027 drilling campaign."

The company has been defining its future drill targets with a capital-light exploration campaign that includes a cost-effective drill program in 2027. Preliminary costings indicate roughly $5 million could fund three exploration wells, or two wells plus additional seismic, with success providing potential for significant upside at relatively low cost.

Over the past six months industrial helium spot prices have roughly doubled, driven by major Middle Eastern shipping and LNG disruptions. Long-term market value is projected to expand at a compound annual growth rate of 3% to 6.7% through 2030.

The development of a natural helium business in Australia is critical. The nation has been forced to import 100% of its helium needs since the BOC Helium plant closed near Darwin in 2023. Since then, the importance of the gas has continued to grow. Helium is a key component of hospital MRI machines and is increasingly in demand for the manufacture of AI semiconductor chips.

Helium was previously on Australia's Critical Minerals List, but the Australian government removed it from the list in 2023.

"Helium's use in non-essential party balloons is obvious, but its role in essential data and computing is not," said Dr Arup George, a researcher in the School of Electrical Engineering and Telecommunications at the University of NSW.

"Hospitals around the world ration scans when helium supply gets disrupted. And that might be when people encounter helium most directly – when it isn't there."

Fellow South Australian industrial gas explorer Gold Hydrogen has become a darling of the ASX with its drilling success, which has seen flow of high-quality helium and hydrogen. Prominence is well placed to follow that success, Dr Davies said.

"We are using relatively low-cost work to build the strongest possible technical and commercial case before finalising our 2027 drilling program," she said.

"We believe this creates a clear sequence of potential catalysts for shareholders as we progressively move from exploration evidence, to defined prospects, potential resource estimates, partnering opportunities and ultimately drilling."