The announcement confirms the Botswana project is on track, with more updates expected in the September quarter.

Multi-channel energy company Pure Hydrogen (ASX:PH2) has provided an important update on the six-well drilling program at its coal-bed methane (CMB) project in Botswana.

The company confirmed that its Serowe-3 well – the second well in the program – has successfully been spudded to a depth of 47m, out of a planned total depth of 500m.

That accompanies the Serowe-2 well, which was drilled to a total depth of 350 metres.

Encouragingly, PH2 encountered “nine metres of target Serowe coal seams in line with pre-drilling estimates”, the company said.

 

Serowe Project – next steps

In light of those positive results, PH2 said it will provide shareholders with consistent updates for the next steps of the project’s development.

Commenting on the Serowe-2 well update, managing director Scott Brown said the company was encouraged by the initial interpretation of the well.

“This is a good outcome and we expect to report on further testing here with our plans to complete the well in the near-term,” Brown said.

“Spudding Serowe-3 reflects our ongoing confidence in the project and we look forward to updating shareholders on progress as our program unfolds.”

PH2 is running the Serowe project in partnership with domestic gas company BotGas, which is funding the initial appraisal programs that are designed to prove out gas reserves at the site.

The partnership allows PH2 to de-risk the exploration phase, while still giving it a 51% interest in the project at the conclusion of the farm-in phase.

Due to COVID-19 restrictions currently in place in Botswana, PH2 said its local drill team will break at the conclusion of drilling Serowe-3, with commencement at Serowe-4 expected to commence before the end of the September quarter.

Elsewhere, PH2 announced that flow tests remain ongoing at the Venus-1 well – part of its Walloon CSG (coal-seam gas) project in the Surat Basin on Australia’s east coast.

“The technical team is currently designing the next phase of the Pilot which is planned for the coming weeks,” the company said.

PH2’s CSG operations form part of its multi-channel operations as it moves towards becoming a major hydrogen player in Australia’s east coast energy markets.

The company’s broader strategy is to develop a network of hydrogen refuelling hubs across the eastern states.

Earlier this year, the company signed an MoU agreement withleading hydrogen player, H2H Energy, which will see H2H provide supply and maintenance services at refuelling outlets at some of Pure Hydrogen’s proposed sites.

This article was developed in collaboration with Pure Hydrogen, 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.

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