Helium and hydrogen rank among the most sought-after industrial gases in the world today. Helium is critical to the medical sector, while natural hydrogen has been identified as a key to the development of modern renewable energy solutions. Both gases are considered particularly critical to Australia's future, where supply constraints — especially for helium — remain a major concern.

Local explorers have begun to uncover world-class resource potential, with South Australia in particular attracting explorers from across the globe. Among those at the forefront of the hunt for these high-value commodities is Prominence Energy (ASX:PRM), which is bringing unique expertise combined with state-of-the-art technology to unlock a number of potential drilling targets.

Gawler acquisition secures district-scale acreage

Led by highly experienced 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 in December 2025, when it entered into a binding agreement to acquire all of the issued capital of Gawler Group Holdings.

That deal provided the company with 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 approximately 64,000 sq km, providing Prominence with district-scale exposure to multiple geological play types across one of Australia's most prospective emerging natural hydrogen and helium provinces. For an early-stage explorer, that scale matters because it gives the company room to rank targets across multiple areas rather than relying on a single prospect.

Technical milestone completed

Using the latest ideas, Prominence has made significant advances in exploring its vast holdings and is now on target to drill its first wells in mid-2027. The company recently hit a scheduled technical milestone with the completion of 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 company's geological interpretation and identified some new targets for 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,” Dr Davies 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.”

Capital-light drilling program

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

That staged approach also gives Prominence time to keep refining the geological case before committing to the drill bit, which is particularly important in a frontier style play where technical work needs to narrow a large land package into a small number of high-priority wells.

Helium market backdrop

Over the past six months, industrial helium spot prices have roughly doubled, driven by the major Middle Eastern shipping and LNG disruptions. Long-term market value is projected to expand at a CAGR of three to 6.7 per cent through 2030.

The development of a natural helium business in Australia is critical, with the nation having been forced to import 100% of its helium needs since the BOC Helium plant closed near Darwin in 2023. Since that time, the importance of the industrial gas has continued to grow: not only is it a key component of hospital MRI machines, it 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,” says Dr Arup George, a researcher in the School of Electrical Engineering and Telecommunications at the University of NSW (UNSW).

“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. So even if most people never see helium being used this way, they rely on it constantly,” Dr George said.

Peer benchmark and catalyst path

Fellow South Australian industrial gas explorer Gold Hydrogen has become a darling of the ASX with its drilling success, which has seen the flow of high-quality helium and hydrogen. Prominence is well placed to follow that success, according to Dr Davies, through what she describes as a disciplined and targeted approach.

“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.”

With prime acreage and a high-value, critical commodity on its doorstep, Prominence Energy is advancing its Gawler holdings toward the planned mid-2027 drilling campaign.

The material in this article is for information only and should not be treated as investment advice. Readers are encouraged to conduct their own research and consult a certified financial adviser before making any investment decisions.