HyTerra lays foundation for hydrogen testing at the Nemaha project in Kansas

• HyTerra accelerates decision to re-enter Sue Duroche-3 exploration well for conversion into monitoring well
• Long-term surface pressure and gas monitoring of the well will enable informed decision on extended testing program
• Company about to spud second initial well and will soon receive analysis of mud zones with elevated helium

Special Report: Encouraging results have led Fortescue-backed HyTerra to convert the Sue Duroche-3 exploration well within its Nemaha natural hydrogen and helium project in Kansas into a monitoring well.

A workover rig is currently on site to re-enter the well and carry out the conversion work, which will allow the company to acquire long-term surface pressure and gas monitoring data over the coming months.

This is critical for HyTerra (ASX:HYT) to both plan and execute an extended well test once it completes the drilling of the Blythe 13-20 well, which is expected to spud around May 20.

Blythe 13-20 is about 1380m east of the historical Scott-1 well that reported hydrogen concentrations of up to 56%.

The two wells represent the first steps for the company in its execution of a 12-month exploration work program that is designed to unlock the potential of natural, or white, hydrogen in Kansas.

“We are writing the playbook now on how to drill hydrogen wells and gather the right information to test them,” executive director Benjamin Mee said.

“Unlike conventional hydrocarbons there is not yet a clear methodology for testing hydrogen wells. It is great to get going on gathering dynamic information in a cost-effective way by converting a drilled exploration well to a monitoring well within 2 weeks of TD.

“This intermediate ‘monitoring’ stage is crucial to both plan and decide on any future well tests.

“Further, we are about to drill another well in a different geological play which will keep accelerating our understanding of these hydrogen and helium systems.”

Andrew Forrest’s Fortescue had acquired a 39.66% interest in the company in December 2024 via a $21.9m investment that fuelled an aggressive program of lease acquisition and is being used to fund an expanded exploration program.

Sue Duroche 3

The Sue Duroche 3 well was drilled to a total depth of 1052m on time and on budget with the mud gas log recording hydrogen gas readings at different intervals when drilling.

This indication of hydrogen in this area was confirmed by independent laboratory analysis, which verified hydrogen concentrations of up to 96.1%.

Elevated helium was also visible on the real-time mud gas log data while drilling into the Pre-Cambrian basement section.

Combining these results with petrophysical analysis led HYT to accelerate the re-entry of Sue Duroche 3 for long-term surface pressure and gas monitoring.

This could take several weeks or months and will enable the company to make an informed decision to execute an extended testing program, which will evaluate the productivity, volume and reservoir characteristics, and ultimately commerciality of any well.

Analyses of mud gas samples from elevated helium zones are expected back by early next week.The company has also completed a seismic survey in a new greenfields hydrogen and helium area within the project to support future drilling targets.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.