HyTerra off to rousing start as first well returns up to 96.1pc hydrogen

• HyTerra’s first ever well – Sue Duroche-3 – has returned ultra-high levels of hydrogen within mud samples
• Hydrogen concentrations of up to 96.1% in the well validate historical occurrences of up to 92% hydrogen
• Company will move to the second well in its exploration drilling program, Blythe 13-20

Special Report: Laboratory analysis has confirmed hydrogen concentrations up to 96.1% within mud samples recovered from the Sue Duroche-3 well at HyTerra’s Nemaha hydrogen and helium project in Kansas.

The results validate historical occurrences of up to 92% hydrogen measured in the Sue Duroche-2 well that was drilled in 2009 while the mud log readings at various depths indicate the presence of a hydrogen play in this area.

Adding further interest for Fortescue-backed HyTerra (ASX:HYT), elevated helium readings were also visible on the mud gas logs while drilling into the Pre-Cambrian basement.

Corresponding samples are included in the remaining mud gas samples being sent to independent laboratories for verification and quantification.

“To achieve some of the highest hydrogen concentrations ever seen in our first well is a great start,” executive director Benjamin Mee said.

“The company is looking forward to receiving the rest of the gas sample results from the labs.

“We are also pleased to see strong collaboration between HyTerra and local contractors to ensure efficient, safe delivery but also have the conviction to trial new techniques that will keep HyTerra at the forefront for unlocking natural hydrogen potential adjacent to markets.”

Well details

Sue Duroche-3 was drilled to a total depth of 3453ft (1052m) on time and on budget with the company planning a re-entry of the wellbore for downhole sampling and gas monitoring.

The first batches of mud gas samples collected at surface that matched peaks seen on the realtime mud gas log were fast-tracked to an independent laboratory, which returned hydrogen concentrations on an air corrected basis of up to 96.1%, some of the highest ever seen in a hydrogen exploration well.

Remaining mud samples from the well have been sent to independent laboratories for verification and quantification.

Fast-tracked analysis of the wireline logs by expert consultants also suggest the well intersected potential reservoir zones with the right levels of matrix porosity, dolomitization and fractures.

A comprehensive subsurface review will continue to refine the HyTerra geological model and support mud gas sample results received from independent laboratories in coming weeks.

HYT will now case and suspend Sue Duroche 3 before mobilising the rig to drill Blythe 13-20 in mid-May 2025.

Depending on the remaining results, it will also start planning a re-entry of Duroche 3 wellbore in coming months for downhole sampling and gas monitoring.

This will be guided by subsurface integration outcomes from the entire exploration drilling campaign.

Nemaha project

The Nemaha project is at the centre of a major industrial and manufacturing hub between Kansas City and Wichita, placing it close to existing railways, roads and pipelines that connect to a long list of potential offtakers.

These include nearby ethanol and ammonia manufacturers and petrochemical plants, all of which already use hydrogen in their processes.

HYT has previously noted that these industries represent the “low-hanging fruit” for decarbonising otherwise hard to clean-up industries.

Almost all hydrogen that’s currently used for industrial processes – like the manufacture of fertilisers – is produced by cracking natural gas.

This process requires significant amounts of energy and generates a fair amount of carbon emissions.

As such, the ability to replace this natural gas derived hydrogen with ‘white’ or natural hydrogen sourced from the Nemaha project will dramatically slash emissions from these industries.

This article was developed in collaboration with HyTerra, 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.