King Energy has identified up to 20 new prospects with similar geological characteristics, potentially holding between 1 trillion to 4.5 trillion cubic feet of gas.

Whitebark raised $2 million through a placement to new investors, while King Energy engaged DiRT Exploration for a remote spectroscopy study to identify gas emissions.

In the latter half of the year, Whitebark will initiate 2D seismic surveys to gain further insights into subsurface geology, with contractor negotiations already underway.

Nearby, the Dukas prospect has a P50 resource estimate of 1.2 trillion cubic feet of gas, although drilling was halted due to high pressure.

The takeover stems from a December all-scrip offer involving 100 million new shares valued at $1.67 million, issued at 1.2 cents each and options at 5 cents each.

Whitebark Energy has acquired a 90% ownership stake in King Energy, which holds the promising Alinya asset located near the Southern Amadeus Basin in Australia.

This acquisition allows Whitebark to control the Alinya project, a significant site for onshore hydrogen, helium, and hydrocarbon exploration.

Both companies have been preparing for a major exploration campaign over the project's extensive 19,467-square-kilometre area during the takeover process.

Santos and Central Petroleum have previously reported successful drilling results in the southern Amadeus, identifying significant gas reservoirs sealed by impermeable salt layers.

The Mt Kitty structure was drilled to 2,259 meters, yielding a flow rate of 500,000 cubic feet per day, with substantial reserves of natural gas, hydrogen, and helium.

Whitebark's acquisition aligns with its strategic shift towards green energy, coinciding with the South Australian government's push for a robust hydrogen strategy.

Currently, King Energy holds a 70% stake in the Alinya project and has an option to purchase the remaining 30%.