Why Prominence Energy (ASX:PRM) Is Targeting Helium and Natural Hydrogen in South Australia's Gawler Craton

Sonal Goyal

19 October 2026 11:05 PM AEDT

Why Prominence Energy (ASX:PRM) Is Targeting Helium and Natural Hydrogen in South Australia's Gawler Craton

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A helium and hydrogen exploration story

Prominence Energy Limited (ASX:PRM) is an early-stage explorer whose focus has shifted from oil and gas towards helium and natural hydrogen in South Australia. Its latest quarterly update reports encouraging surface gas readings at its PEL 803 licence, but the company has not yet drilled a well.

What the company does and stage

Prominence completed the Acquisition of Gawler Group Holdings Pty Ltd on 15 December 2025, after South Australia's Department for Energy and Mining approved the change of control for PEL 803. The portfolio covers about 64,000 square kilometres across the Gawler Craton, made up of one granted licence and eight licence applications, in the Eyre and Northern Hinge projects. PEL 803, granted in August 2025, covers about 2,799 square kilometres. The company is pre-revenue.

Latest verified developments

A first on-ground soil gas survey at PEL 803 in April 2026 produced field readings of helium up to 36 parts per million, hydrogen up to 1,105 ppm and methane up to 5,000 ppm. Laboratory analysis of 63 samples, announced on 11 June 2026, found helium up to 63 ppm, more than 12 times atmospheric background, and hydrogen up to 3,427 ppm, with 64 per cent of samples showing hydrogen above atmospheric levels. A satellite spectral study over the Eyre Project also identified anomalies consistent with potential helium, hydrogen and methane generation.

These are exploration results, not a defined resource, and surface soil gas does not by itself show that gas is accumulated at depth or can be produced commercially. The company also secured CSIRO Kick-Start matched funding in April 2026 for a research project costing $116,252, with CSIRO contributing $50,000.

Funding and dilution

Prominence raised $1.56 million in the June 2026 quarter, announced on 1 May 2026 after a Trading halt on 29 April. The money is intended for licence progression, geophysics, prospect definition and working capital. The announcement did not disclose the dilution. Management says existing cash is sufficient for the planned 2026 technical programme, but additional capital may be needed to fully fund 2027 drilling.

For comparison, the June 2025 Quarterly Report showed cash of $414,000 and operating outflow of $162,000 for that quarter. Current cash and burn were not found.

Milestones and costs

The company is targeting drilling in June or July 2027. Preliminary costings in the quarterly update suggest about $5 million could fund either three exploration wells, or two wells plus extra seismic acquisition. That is a management estimate.

Sector context and risks

Helium and natural hydrogen exploration is at an early stage globally, and few projects have moved from surface anomalies to commercial production. Key risks for Prominence include licence grants for the eight pending applications, drilling success, funding and market development. Legacy interests, including a 12.5 per cent stake in the WA-519-P permit and a 100 per cent interest in the Big Apple gas prospect in the Gulf of Mexico, were described in 2025 filings; the Sasanof-1 well on WA-519-P found no Hydrocarbons in 2022.

FAQs

Q: What has Prominence Energy (ASX:PRM) found at PEL 803?

A: Laboratory analysis of 63 soil gas samples, announced on 11 June 2026, found helium up to 63 ppm and hydrogen up to 3,427 ppm. These are exploration results, not a defined resource, and surface soil gas does not by itself show gas accumulated at depth.

Q: How large is Prominence's Gawler Craton portfolio?

A: The portfolio covers about 64,000 square kilometres across the Eyre and Northern Hinge projects, made up of one granted licence, PEL 803, and eight licence applications.

Q: When does Prominence plan to drill?

A: The company is targeting drilling in June or July 2027. Preliminary costings suggest about $5 million could fund three exploration wells, or two wells plus extra seismic acquisition.

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