Thor Energy and H2EX Secure 4,123 km² in Otway Basin for Natural Hydrogen and Helium Exploration

When you hear “hydrogen production,” you probably picture massive electrolysers and sprawling solar farms. But down in southeastern South Australia, natural hydrogen is quietly making its mark. On 20 February 2026, Thor Energy plc and H2EX Ltd secured two Regulated Substance Exploration Licence Applications—RSELA 810 and RSELA 811—covering a whopping 4,123 km² in the onshore Otway Basin. This 50:50 partnership is dusting off decades of old oil and gas data to chase both hydrogen and helium in a basin first drilled back in 1915.

Andrew Hume, Thor Energy’s MD and CEO, says these new licences build right on the heels of insights from their flagship HY-Range project. The team will lean on tried-and-tested workflows—everything from fresh seismic reprocessing to smart basin modelling—to zero in on the best targets and take the guesswork out of those early drill bits.

Historic Hydrogen in the Otway Basin

Believe it or not, the Otway Basin’s hydrogen story goes way back. The very first surprise popped up at the 1915 Robe-1 well, smack in what’s now RSELA 810, where logs recorded about 25.4% natural hydrogen (Alexander, 2023). For over a century, crews chased oil and gas here, but government records also flag hydrogen shows in the Cooper, Eromanga and Yorke Peninsula basins. Until now, those plays have been largely forgotten in the hunt for clean energy.

Exploration Focus and Technology

At its core, this JV is a love letter to geology and data science. By re-examining vintage seismic lines, well logs and production reports, the partners can map out where hydrogen might be generated—think serpentinization in ultramafic rocks or radiolysis underground—and how it migrates into structural and stratigraphic traps. Plus, there’s early access to pipelines and nearby infrastructure in South Australia and Victoria, so getting to market faster isn’t just wishful thinking.

Strategic Implications for Clean Energy

These licences aren’t just empty ground; they’re a strategic play. Thor Energy already has its fingers in uranium, copper, gold and rare earths. Adding nearly a million acres of Otway Basin hydrogen and helium exploration tinters their portfolio against commodity swings and gears them up for the rising tide of clean energy demand. And let’s not forget helium’s superstar status in semiconductors, medical imaging and aerospace—there’s extra upside there, too.

Economic and Regional Impact

Reviving old well pads and dusting off road networks could bring a real boost to local communities. Seismic crews, environmental consultants, drilling rig operators—everyone stands to pick up work. Local contractors could snag more contracts, and if a production facility ever gets the green light, it could spark jobs, training programs and infrastructure upgrades that line up perfectly with South Australia’s clean energy ambitions.

Policy Context and Market Dynamics

Natural hydrogen sits right at the crossroads of new regulations and surging market interest. South Australia’s cheerleading for renewables makes it prime ground for innovation, but tenure rules and environmental approvals specifically for hydrogen are still a work in progress. Early movers like Thor Energy and H2EX could end up shaping the rulebook as Australia pushes to become a major hydrogen exporter.

Challenges and Prospects

Of course, it’s no walk in the park. Proving commercial volumes means drilling to nail down reservoir quality, pressure regimes and trap integrity. Pricing models for naturally sourced hydrogen? They’re still in their infancy. Regulators are playing catch-up, too. That said, the JV’s emphasis on risk reduction—leaning on historic data and existing infrastructure—means they’re charting a cautious but smart course forward.

What’s Ahead

Over the next 12 to 18 months, the team will reprocess seismic surveys, fine-tune basin models and carry out environmental baseline studies. Community consultations will run alongside exploration, making sure everyone’s on the same page. If the Otway Basin geology turns out to be as friendly to hydrogen as it was to oil and gas, we could be staring at a whole new chapter in how Australia sources low-emission energy.

As we all push toward heavier industrial decarbonization, natural hydrogen might just shine as the perfect complement to electrolytic routes. Out here in the Otway Basin, a century-old well reminds us that sometimes the best breakthroughs come from rediscovering what’s been under our feet all along.