HyTerra pinpoints April start for hydrogen, helium drilling at Nemaha

HyTerra preparing to kick off natural hydrogen and helium drilling in April 2025
First two back-to-back wells will sample the two gases in the Nemaha project
Company will also start airborne gravity and magnetic surveying in March 2025

Special Report: Fortescue-backed HyTerra has pinpointed April 2025 to spud the first wells of the high-impact, multi-well exploration program at its Nemaha project in Kansas.

The first two back-to-back wells – with the option for a third well – mark the first step of a comprehensive 12-month work program designed to unlock the potential of natural, or white, hydrogen in the US state.

Kansas Corporation Commission approval for well permits at all well locations allow the company to choose the highest priority targets to drill first.

Simultaneously, Hyterra (ASX:HYT) will carry out geophysical programs to support future wells to be drilled in the second half of 2025.

This will begin with airborne gravity and magnetic surveying starting in March 2025.

“This drilling campaign marks a major milestone for HyTerra as we leverage our significant lease position through a comprehensive staged exploration program targeting both hydrogen and helium gases,” HyTerra executive director Benjamin Mee said.

Exploration program

Contractor Murfin Drilling Company is preparing to commence final testing of the rig before moving to the first well site.

Primary objectives of the drilling program are to obtain key subsurface data for hydrogen and helium, including mud gas samples, wireline logs, and an in-depth understanding of reservoir characteristics.

The program will be carried out in three steps starting with the actual drilling and sampling carried out by a conventional oil and gas rig modified for hydrogen work.

This will be followed by data gathering and subsurface analysis to refine the geological model and support further exploration expenditure before HYT carries out extended production testing.

Meanwhile, the airborne large-scale, high-resolution gravity and magnetic survey covers ~10,000 line kilometres and is expected to be completed in April.

This data will be combined with the initial drilling results to refine well locations for the Stage II exploration drilling program.

Natural hydrogen potential

The >60,000 acre Nemaha project sits in the centre of a major industrial and manufacturing hub between Kansas City and Wichita.

This places the project in proximity to existing railways, roads, and pipelines that connect it to a long list of potential offtakers nearby including ethanol and ammonia manufacturers and petrochemical plants, all of which already use hydrogen in their processes.

Historical exploration wells have confirmed the presence of hydrogen and helium, with some returning up to 92% hydrogen and 3% helium.

Natural hydrogen – hydrogen that was naturally formed through geochemical reactions within the earth and trapped in reservoirs akin to those that host oil and gas – can potentially be cost-competitive with fossil fuels.

Besides being clean burning compared to natural gas when used for heating or power generation, natural hydrogen can also displace fossil fuel-derived hydrogen that’s used for industrial processes such as the manufacture of fertiliser, which will deliver immediate reductions in carbon emissions.

This potential was enough to attract ASX 20 iron ore and green energy giant Fortescue (ASX:FMG) to make a $21.9m investment for a 39.8% strategic interest in HYT.

That investment also allowed the company to embark on an aggressive program of lease acquisition and expand its planned exploration program.

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.