Constellation Resources Ltd
Constellation Resources Secures Two Critical Permits, Unlocking Frontier Energy Basin Exploration in Western Australia
Constellation Resources (ASX: CR1) has been granted two Special Prospecting Authorities with Acreage Options, SPA 048 AO and SPA 049 AO, over portions of the Edmund-Collier Basin in Western Australia. The Constellation Resources Edmund-Collier Basin permits in Western Australia were issued by the Department of Mines, Industry Regulation and Safety, clearing the way for on-ground exploration targeting hydrogen, helium and natural gas across a basin the company describes as holding a first-mover position.
The Edmund-Collier Basin extends over 500 kilometres and already carries several independently confirmed indicators of an active subsurface gas system, ranging from a historical gas blowout in 1977 to CSIRO-verified detections of hydrogen, methane and ethane preserved in rock pore spaces. According to the announcement, furthermore, the company expects the technical work now enabled by these permits to generate consistent news flow in the months ahead.
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Why the Edmund-Collier Basin Deserves Attention
The Edmund-Collier Project comprises five contiguous SPA-AOs covering 43,781 km² in Western Australia's Gascoyne Province. The basin sits adjacent to major natural gas transmission pipelines, a geographic feature that Constellation states reduces the infrastructure burden typically associated with frontier gas exploration.
Geologically, the Edmund Fold Belt hosts a 4 to 5 kilometre thick succession of Proterozoic clastic rocks (sediments derived from the erosion of pre-existing rocks), organic-rich shales, carbonates and dolerite sills, with deeply penetrating fault systems. According to the company, the basin contains the building blocks required for a working gas system:
- Source rocks with confirmed organic carbon content
- Gas generation indicators, including thermogenic hydrogen and natural gas
- Reservoir units across multiple geological formations
- Sealing lithologies capable of trapping accumulations
- Long-lived structural traps mapped by the Geological Survey of Western Australia
The presence of these elements together for hydrogen, helium and natural gas is what the company positions as distinguishing the Edmund-Collier Basin from more conventional exploration settings.
The Evidence Already on the Ground
Before further drilling takes place, Constellation has access to a body of pre-existing data referenced in the announcement that supports the basin's prospectivity.
Historical Gas Blowout (1977)
Percussion hole JRP-TP-03, drilled on an antiformal trap site (an arch-shaped rock structure capable of trapping gas beneath an impermeable layer), recorded a pressurised gas outburst and surface ignition. The company describes this as a rare, high-impact indicator of an active subsurface gas system.
Energy Gases in Pore Spaces
CSIRO analysis of sandstone samples from drill holes DD97BC14 and DDH3 identified hydrogen, methane and ethane preserved within rock pore spaces, providing direct chemical evidence of subsurface gas.
Total Organic Carbon (TOC) Results
TOC measures the amount of carbon-rich organic material within a rock that can generate hydrocarbons. Higher values generally point to stronger source-rock potential, with industry thresholds for good source rocks typically starting around 1 to 2%.
| Drill Hole | TOC Range | Average TOC | Interval |
|---|---|---|---|
| DDH2 | 0.92% to 8.40% | 5.24% | 141 m |
| DDH3 | 2.06% to 7.56% | 4.17% | 74 m |
| DD97BC14 | 3.06% to 7.75% | 5.76% | 59 m |
These results, averaging well above the 2% threshold across intervals of up to 141 metres, indicate what the company describes as a thick and laterally extensive source-rock package with meaningful gas-generative capacity.
Thermal Maturity (EqVR)
Vitrinite reflectance equivalent (EqVR) assesses how "cooked" organic material within a rock has become as a result of heat and pressure over geological time. Higher values indicate greater thermal maturity, with specific ranges corresponding to oil, wet gas, dry gas or thermogenic hydrogen generation windows. According to the company, the Edmund-Collier results place the source rocks within the dry natural gas and thermogenic hydrogen generation windows.
| Drill Hole | EqVR Range | Average EqVR |
|---|---|---|
| DDH2 | 3.58 to 5.21 | 4.4 |
| DDH3 | 5.33 to 11.05 | 8.19 |
Porosity Measurements
Initial porosity results from 29 samples across six drill holes show a range of values across multiple formations, with further studies underway.
| Formation | Porosity Range |
|---|---|
| Discovery Formation | <0.1% to 11.63% |
| Kiangi Creek Formation | 0.10% to 32.23% |
| Irregully Formation | 0.81% |
The Kiangi Creek Formation shows the widest porosity range of the three, with upper values the company describes as attractive for reservoir consideration.
What the Two New Permits Enable
The granting of SPA 048 AO and SPA 049 AO, previously known as STP-SPA-118 and STP-SPA-119, unlocks two distinct work programs that Constellation states are now underway.
Petrographic Sampling Program
Led by petroleum consultants Dr Mark Partington and Iain Copp, with laboratory support from Atherium, this program uses cores stored at the Perth Core Library. It includes:
- Porosity and permeability measurements
- Thin-section petrography (the microscopic study of rock samples to determine composition and structure) across multiple geological formations
- Assessment of reservoir characteristics of key units within the basin
This work is intended to establish a play type ranking for the basin — a prioritised assessment of where gas accumulations are considered most likely to occur and in what form.
Soil Gas Survey
A regional soil-gas survey will be conducted across both SPA-AOs to detect micro-seepage, small quantities of gas that have migrated from subsurface accumulations toward the surface. The methodology outlined in the announcement includes:
- Shallow holes of approximately 50 cm depth drilled along existing tracks at 1 to 3 km spacing
- Gas readings taken via handheld meter, with anomalous samples sent to Atherium Laboratory for gas chromatography verification
- Compilation of regional base maps to identify anomalous leakage corridors and areas
Priority survey areas include the Woodlands Anticline, near the 1977 gas explosion site, and areas identified in CSIRO studies as more likely to show surface leakage from subsurface gas plays.
Work Program Timeline and Key Milestones
Constellation has outlined a defined timeline for the current exploration phase, with all workstreams expected to conclude by the end of Q4 2026.
| Milestone | Expected Timing |
|---|---|
| Petrographic sampling and porosity/permeability studies | Q4 2026 |
| Soil gas survey across SPA 048 AO and SPA 049 AO | Q4 2026 |
| Play type ranking and basin assessment results | Q4 2026 |
| Acreage option exercise deadline (apply for PEP or PDR) | By 7 July 2027 |
| Environmental Plan finalisation for STP-SPA-0116 | Progressing |
| Native title discussions for STP-SPA-0143 | Underway |
Under the SPA-AO structure, Constellation has until 7 July 2027 to exercise its acreage option and apply for a Petroleum Exploration Permit (PEP) or a Petroleum Drilling Reservation (PDR), provided the application meets the assessment criteria published by the relevant department.
The Beetaloo Analogue
Constellation has drawn a geological comparison between the Edmund-Collier Basin and the Beetaloo Basin in the Northern Territory. According to the company, the Beetaloo Basin:
- Is of similar Proterozoic age to the Edmund-Collier Basin
- Hosts thick, laterally extensive organic-rich shales
- Is described by the company as being close to commencing commercial production
Constellation states that the Constellation Resources Edmund-Collier Basin permits in Western Australia relate to a project hosting similarly aged and characterised geology, and one that already carries confirmed gas indicators. Consequently, the company positions the basin's proximity to existing gas transmission pipelines as a distinguishing commercial factor relative to Beetaloo.
Understanding the SPA-AO Structure
"What is a Special Prospecting Authority with Acreage Option (SPA-AO)?"
An SPA-AO is a Western Australian petroleum tenure instrument that grants the holder the right to conduct specified prospecting activities — in this case soil-gas surveys and technical studies — over a defined area. It also includes an acreage option: the right to apply for a full Petroleum Exploration Permit (PEP) or Petroleum Drilling Reservation (PDR) within a prescribed timeframe, subject to meeting relevant assessment criteria.
It provides a lower-cost mechanism for assessing a frontier basin before committing to a full exploration permit. For Constellation, this structure provides a staged approach: complete low-cost technical work, assess prospectivity through the resulting data, and then determine whether to exercise the option to secure longer-term tenure for more advanced exploration, including seismic surveys and drilling.
Capital Position: Entitlement Offer in Progress
Alongside the permit announcement, Constellation confirmed it launched a non-renounceable pro-rata entitlement offer on 24 June 2026, offering eligible shareholders one new share for every three held at $0.12 per share, targeting approximately $3.22 million before costs.
The current announcement serves as an update to shareholders in connection with that offer, confirming compliance with continuous disclosure obligations under the Corporations Act and stating that no material information has been withheld. Should the entitlement offer be well subscribed, proceeds are intended to support the technical work programs enabled by the two newly granted permits.
Constellation's Managing Director Peter Woodman and Technical Director Peter Muccilli confirmed the announcement was authorised in accordance with the company's continuous disclosure policy, with Mr Muccilli noted as the Competent Person responsible for the technical information underpinning the exploration results referenced in the release.
Why Investors Should Follow Constellation Resources
Constellation's position in the Edmund-Collier Basin combines a frontier basin carrying multiple pre-existing prospectivity indicators, a first-mover tenure position, and a defined technical work program with near-term catalysts. In addition, the Constellation Resources Edmund-Collier Basin permits in Western Australia provide a structured pathway toward more advanced exploration activity.
Points investors may wish to monitor over the coming months include:
- Anticipated news flow from the technical programs across the two SPA-AOs through to year-end
- Lower-cost assessment pathway via soil gas surveys and petrographic studies ahead of any decision on seismic or drilling programs
- Multi-commodity exposure across hydrogen, helium and natural gas within a single project
- Infrastructure proximity, with the basin bordered by existing gas transmission pipelines
- Technical team engagement, including Dr Mark Partington, Atherium and Iain Copp
- Defined timeline, with the acreage option exercise deadline of 7 July 2027 providing a structured decision window
Overall, the Constellation Resources Edmund-Collier Basin permits in Western Australia represent a project profile that may warrant attention from investors following early-stage energy exploration, given the confirmed hydrogen, helium and natural gas indicators, first-mover position across 43,781 km², and multiple catalysts expected before year-end.
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Glossary of Key Terms
| Term | Definition |
|---|---|
| SPA-AO (Special Prospecting Authority with Acreage Option) | A WA petroleum tenure allowing prospecting activities with the right to apply for a full exploration permit within a prescribed period |
| TOC (Total Organic Carbon) | A measure of carbon-rich organic material in rock, indicating source-rock potential for gas generation |
| EqVR (Vitrinite Reflectance Equivalent) | A thermal maturity indicator showing how "cooked" organic matter is, used to identify which hydrocarbon generation window a source rock sits within |
| Petrography | The microscopic study of rocks and minerals to determine their composition and structure |
| Play Type | A category of geological setting where hydrocarbons can accumulate, defined by a combination of source, reservoir, trap and seal |
| Antiformal Trap | An arch-shaped geological structure capable of trapping gas or oil beneath an impermeable seal |
| Micro-seepage | Small quantities of gas that migrate from a subsurface accumulation to the surface, detectable via soil gas surveys |
| PEP (Petroleum Exploration Permit) | A full-form WA petroleum exploration tenure granting the right to undertake exploration including seismic and drilling |
Ready to Learn More About Constellation Resources' Edmund-Collier Basin Project?
Constellation Resources (ASX: CR1) holds a first-mover position across 43,781 km² of a frontier energy basin in Western Australia, with confirmed gas indicators already in the ground and a defined technical work programme delivering catalysts through to year-end. For investors seeking early-stage energy exploration opportunities, the company's project profile warrants a closer look. Visit the Constellation Resources website to explore the full details of the Edmund-Collier Basin project and stay across upcoming developments.
