Flow testing proves Pure Hydrogen’s Venus-1 well is a real beauty
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Initial flow testing of Pure Hydrogen’s Venus-1 coal seam gas well in Queensland has been completed with what it described as very encouraging results thus far.
This is not unexpected given that the pilot well recorded early gas breakout after producing just 50 barrels of water following the start of the controlled drawdown earlier this year, confirming the interpreted high gas saturations of the target upper Walloon coals seams.
Pure Hydrogen (ASX:PH2) has now shut in the well while its technical team and third-party consultants engage with the Queensland government to secure the approvals needed to stimulate the target coals to prove commercial gas flow rates.
Analysis of flow test data and modelling indicates that a more aggressive stimulation method is needed for commercial gas flow rates to be achieved, which will allow the company to convert the current best estimate contingent resource of 130.3 petajoules into reserves.
“Pure Hydrogen is pleased with the progress on Venus 1 and the results reported today are highly encouraging,” managing director Scott Brown said.
“We can see a clear pathway to commercial gas flows and the certification of material gas reserves of Project Venus.
“Gas prices on the east coast have risen significantly in the last few months, and when coupled with the quality of the Venus project and its potential to be feedstock to create hydrogen fuel, we have multiple catalysts to advance this project to its next phase of development.”
Pure Hydrogen added that its discussions with a range of large industrial users for back to base operations that are considering the use of hydrogen trucks is paying off and that offtake and supply agreements are expected soon.
It is also assessing the possibility of converting gas from Venus-1 to hydrogen under its Project Saturn and has appointed experienced energy executive Andrew Thompson as its hydrogen production manager to lead this effort.
The company says its unique methane pyrolysis method is capable of producing turquoise hydrogen from methane at a lower cost than green hydrogen competitors using renewable energy to power electrolysers that split water into hydrogen and oxygen.
There’s also considerable value-add as the process has the ability to produce high-value, solid carbon by-product such as graphite and carbon nanotubes.
This article was developed in collaboration with Pure Hydrogen, 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.