Highlights

  • Multiple deeper gas leads identified beneath the Warro Gas Field.
  • Several anomalies lie about 300 to 500 m from existing wellbores.
  • Deeper targets could have conventional reservoir quality.
  • R7 Retention Lease renewal application pending, with the current lease expiring on 4 December 2026.

H3 Energy Limited (ASX:H3E) has completed reprocessing of its Warro 3D seismic data and identified several deeper gas leads beneath the Warro Gas Field in Western Australia. The work was supported by a $50,000 Exploration Incentive Scheme grant awarded in April 2026.

Deeper Leads Identified

The leads sit beneath the proven Yarragadee discoveries, within the Cadda and Cattamarra Coal Measures. Several low acoustic impedance anomalies lie about 300 to 500 m from previously drilled wellbores, which could allow testing without a new exploration well.

The Warro 4 well partially penetrated a deeper sand at total depth that has never been flow tested. The acoustic impedance volumes are uncalibrated, and calibration using existing well logs would help test whether the anomalies indicate reservoir quality or gas.

A Potential Conventional Play

Gas in the Yarragadee formation has historically been treated as tight and requires stimulation. If the deeper targets have conventional reservoir quality, they may flow gas without stimulation.

Nearby analogue wells in the Cattamarra Coal Measures include Walyering 1, which flowed up to 13.5 MMscf/d and is currently producing, and Red Gully 1, which flowed 12.1 MMcfg/d. CEO Nik Sykiotis said the results make Warro a significantly more attractive asset than previously understood.

Next Steps and Lease Renewal

H3 Energy plans to complete seismic interpretation, estimate target sizes, consider a seismic inversion and select an appraisal concept such as a sidetrack, deepening or new well.

The R7 Retention Lease expires on 4 December 2026. A renewal application was lodged in May 2026, and the outcome is pending. The company noted that the leads are not discoveries and further evaluation, drilling and approvals are required.

Key Takeaways

  • Reprocessing has highlighted a possible second play beneath Warro.
  • Some targets may be testable from existing wells.
  • Nearby wells in the same formation have flowed gas naturally.
  • The R7 lease renewal outcome is a key near-term milestone.