Pure Hydrogen expects to drill the first of two further appraisal wells at its Serowe coalbed methane project in the second half of September.

This comes after the company carried out a short term flow test of the Serowe-3 well, which intersected 41m of gassy coals – more than double the company’s pre-drill estimates.

Additionally, processing of a new logging method showed adsorbed gas, free gas and indications of permeability in several of the target coal seams.

Should this method prove successful in assessing the intersected coal seams, it can reduce the number of expensive core holes and analysis that Pure Hydrogen (ASX:PH2) would normally be required to carry out to certify reserves, thereby allowing the fast-tracking of reserves certification.

It added that the interpreted natural permeability and high gas contents in the thicker coals encountered in Serowe-3 meant that the risk and cost of the commercial development of a multi-trillion cubic feet project in central southern Africa could be substantially reduced using inexpensive vertical well completions methods.

“This multi-well exploration program across the Serowe CBM Gas Project is progressing to plan and the results to date are very encouraging, particularly as we are encountering much thicker gassy coal seams than we first expected,” managing director Scott Brown said.

“With more drilling and flow testing occurring shortly, we expect a lot of news flow across September and October on Serowe’s progress where we are free carried.

“Work is also advancing favourably across our hydrogen portfolio in Australia and we look forward to sharing more progress very soon.”

The company is free carried on the first $6m of expenditure on the project.


Serowe CBM project

Pure Hydrogen owns a 51% stake in the Serowe CBM project in Botswana with partner Botgas holding the remaining 49%.

The project currently hosts a prospective resource of 2.8 trillion cubic feet of gas net to the company within the interpreted high-grade area.

Appraisal drilling is aimed at upgrading the resource by demonstrating the widespread uniformity of the Serowe formation coals.

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.