Special Report: Constellation Resources has significantly strengthened the case for a potential basin-scale natural gas opportunity in WA after finding natural gas and helium.
- Constellation Resources confirms natural gas and helium in hole WHRD021
- Values of up to 97% methane and 0.24% helium seen in the iron ore exploration hole in SPA-0143
- Discovery hints at potential reservoir within its basin-scale natural gas opportunity in WA
The company has built up a footprint of 87,602km2 contained within nine Special Prospecting Authorities with an Acreage Option over the Edmund-Collier, Yerrida and Ashburton basins.
The SPA-AOs are intersected by the Goldfields Gas Pipeline and are in close proximity to a number of major consumers, including iron ore mines that are investigating pathways for onsite green power and steel production.
While there has been evidence that gas is present within this region, Constellation Resources’ (ASX:CR1) latest work provides further support for the presence of a working natural gas system and basin-scale opportunity.
Repeated sampling of the historical WHRD021 hole in SPA-0143 within the Edmund-Collier Basin confirmed that methane and helium with values of up to 97% and 0.24% respectively are being vented continuously.
This constant flow of gas bodes well for a potential connection to a productive reservoir.
To top it off, the results of up to 97% methane is well above the usual +85% that’s pumped into natural gas pipelines while helium values of more than 0.1% are considered to be helium-rich.
Finding 0.24% helium, which is above the range of 0.09-0.21% found in the recently depleted Bayu-Undan offshore Darwin, in a shallow mineral exploration hole is considered highly unusual and warrants further exploration.
Having high concentrations of both methane and helium from a potentially long-term venting drillhole provides important evidence of a potential basin-scale gas system within the underexplored Edmund-Collier Basin.
Gas struck miners
Diamond hole WHRD021 was drilled in 2012 by Atlas Iron to test for buried Brockman Formation iron mineralisation with Exploration Incentive Scheme (EIS) co-funding from the Geological Survey of Western Australia.
Core donated to the Perth Core Library – a requirement for holes drilled with funding under the EIS – was analysed by peak science body CSIRO to determine the prospectivity of natural hydrogen exploration over the entire Edmund Collier project under a technical services agreement with the company.
Six samples from the hole at the easternmost end of the East Pingandy Shelf and near major deep mantle tapping faults were tested, returning the highest readings for hydrogen, natural gas, helium and ethane of all drill holes analysed across the basin dataset.
The company’s subsequent measurement of gas over three separate visits suggest ongoing gas expulsion from the hole in SPA-0143, for which the company recently received preferred applicant status from the WA Department of Mines, Petroleum and Exploration.
Further support for the basin-scale potential comes from SPA-0118 to the west where a desktop review of historical mineral exploration activities uncovered drilling by AMOCO Minerals in the late 1970s.
This includes the 1977 percussion drillhole JRP-TP-03 that intersected significant volumes of gas that triggered a surface ignition event.
While no compositional gas analysis was undertaken at the time, the pressurised gas show with confirmed ignition within a proven structural trap, supports further exploration within an emerging basin-scale gas play.
Further work
CR1 is planning to carry out isotopic studies and laboratory analysis programs aimed at defining the origin and composition of the methane and helium produced at WHRD021.
Proposed on-ground soil gas and drillhole collar surveys will begin shortly after each SPA is granted.
The company plans to collect gas samples at each suitable site and submit them for laboratory analysis of gas compositions to identify areas of seepage from a potential subsurface gas system.
All necessary native title approvals have been obtained for SPA-0118 and SPA-0119 with the planned six-month on-ground activity expected to be granted shortly.
The company will also start necessary stakeholder engagements for SPA-0143.
This article was developed in collaboration with Constellation Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
