HyTerra secures more hydrogen, helium play types with Nemaha project expansion

HyTerra acquires 13,000 acres of ground to expand its Nemaha hydrogen and helium project to ~52,000 acres
New leased area adds play diversity to support expanded drill program
Shareholders to vote on $21.9 strategic investment by Fortescue in December

Special Report: HyTerra has further expanded the footprint of its Nemaha hydrogen and helium project in Kansas to ~52,000 acres with the acquisition of a further 13,000 acres of ground.

This comes just a month after the company tripled its Nemaha lease position from 12,880 to 39,000 acres in early September.

HyTerra (ASX:HYT) selected the new leased area based on subsurface features related to both the Mid-Continent Rift and overlying sedimentary rocks that were identified in multiple reprocessed seismic lines.

These provide additional play diversity to support the expanded drilling program linked to the $21.9m Fortescue subscription agreement that shareholders will vote to approve at the upcoming general meeting in December.

Executive director Dr Avon McIntyre said acquiring exploration leases in this area has been a high priority for the company.

“The subsurface team at HyTerra identified this area earlier in the year as being particularly prospective for hydrogen and helium and we acquired some legacy seismic data in the area to assist us in selecting the right leases to acquire,” he added.

“Reprocessing of this seismic data has had a huge uplift in imaging quality and has revealed great candidates for our upcoming drilling campaign, which we are progressing now for additional drilling locations.”

Expanded drilling program

Fortescue has agreed to extend the end date for shareholder approval of its strategic investment from November to December.

The subscription of 644.1 million shares priced at 3.4c each, which will give Fortescue a 39.8% interest in HYT, will grant the company funds to expand its planned exploration drilling program at Nemaha.

While it had originally intended to drill the Sue Duroche 3 and Blythe 13-20 wells, the investment means that the company will have the capacity to conduct a six-well campaign after finalisation of the subscription.

These wells will be drilled across a number of geological plays, allowing HYT to select the best areas for development.

Drilling is expected to start as soon as practicable following the general meeting while infill leasing of acreage will continue.

Nemaha sits in the centre of a major industrial and manufacturing hub between Kansas City and Wichita, placing it 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.

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.