Pure Hydrogen CSG well sets stage for more gas resource growth

Pure Hydrogen has uncovered further evidence that its Serowe coal seam gas project could host significantly more gas after a step-out well hit more gassy coal than anticipated.

Preliminary log interpretation indicated that the Serowe-4 well had intersected 31m of gassy coal, about 150% thicker than its pre-drill estimates.

The company notes that the result reduces the risk and cost of the commercial development using inexpensive vertical well completions methods and proving a multi-trillion cubic feet coal seam gas field in central southern Africa

This comes after Pure Hydrogen (ASX:PH2) had upgraded best estimate contingent (2C) resources from 23 billion cubic feet to 160.6Bcf after integrating the results from the Serowe-2 and Serowe-3 wells.

Serowe-3 had encountered 41m of interpreted gassy coal seams with free gas breaking out of fluids on the surface

Drilling is currently underway on Serowe-5.

Both Serowe-4 and Serowe-5 are 5km step-outs from Serowe-3 and will serve as the basis of the next resource revision in 2022.

“The Serowe Gas Project is shaping up well with the continuation of excellent results to date from the multi-well appraisal program, particularly the much thicker gassy coal seams in Serowe 3 and now Serowe 4,” managing director Scott Brown said.

Pure Hydrogen is free-carried by its partner Botala Energy on the first $6 million expenditure in the Serowe Gas Project.

The company is also progressing its hydrogen joint venture with Botala within Southern Africa and has identified potential offtake parties and sites that could be used for a hydrogen business.

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.