HyTerra triples lease acreage at US hydrogen project

HYT picks up additional 26,200 acres of leases at its Nemaha project in Kansas
Project is in a highly prospective region for hydrogen
EGM vote upcoming for Fortescue $21.9m strategic investment

Special Report: HyTerra has tripled its lease acreage at its Nemaha hydrogen and helium project in Kansas, USA, from 12,880 to 39,000 acres ahead of drilling.

The additional 26,200 acres of leases are in the highly prospective Washington and Marshall Counties above the ~1 billion-year-old failed tectonic rift Mid-Continent Rift – considered to be the ‘generation zone’ for hydrogen.

Numerous historic hydrogen occurrences in this area are believed to originate from the iron-rich rocks within the Rift, and the hydrogen generated from this source is thought to migrate upward along faults, towards the crest of the Nemaha Ridge.

HyTerra (ASX:HYT) says additional prospectivity is inferred by structural lineaments marking the northern extent of the Mid-Continent Rift in Kansas, increasing the likelihood of trapping features in this area.

HyTerra, ASX, HYT, Lease, Acres, Nemaha, Project, Hydrogen — HYT’s leases in Project Nemaha. Pic: via HYT

Highly prospective for hydrogen

Looking forwards, the company plans to continue infill leasing, leasing of new exploration areas, and securing additional well permits.

“Our predictive model for white hydrogen and helium in Kansas highlighted this area as being particularly prospective and we are very pleased to execute in record time,” HYT executive director Dr Avon McIntyre said.

“This was only possible through funds raised earlier this year and the sterling efforts of our local Kansas-based leasing team who have been able to help us triple our acreage position in less than two months.

“We are currently pursuing new areas to lease based on more identified prospectivity in the area.”

Fortescue strategic investment EGM

In the meantime, the company is preparing for an extraordinary general meeting for shareholders to vote on Fortescue’s proposed $21.9m strategic investment in HyTerra.

The EGM is expected to be held on or before November 11, 2024, with the planned drilling campaign postponed until after the finalisation of the subscription, expected in Q4 2024.

“Securing significant acreage right now prior to the upcoming drilling is key for value addition to shareholders,” Dr McIntyre said.

“In anticipation of a positive outcome at the upcoming EGM vote on Fortescue’s 39.8% strategic interest acquisition in HyTerra, which includes funding for a 6 well drilling program, we will continue to infill lease in the area and work up drillable locations over the coming weeks to add to our growing portfolio of geologically diverse drilling targets.”

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.