Pure Hydrogen spuds first coal seam gas step-out well in Botswana

Pure Hydrogen has kicked off a two-well program aimed at expanding on the success of the earlier Serowe-3 well at its Serowe coalbed methane project in Botswana.

Both Serowe-4 and Serowe-5 are 5km step-outs from the successful Serowe-3 well and target a similar Serowe coal seam thickness of 15m whilst improving the regional geological understanding of the Upper and Lower Morupule seams within the acreage.

Serowe-3 had encountered 41m of interpreted gassy coal seams with free gas breaking out of fluids on the surface while a new logging method showed adsorbed gas, free gas and indications of permeability in several of the target coal seams.

Pure Hydrogen (ASX:PH2) will use results from the two wells to determine the location of a commercial pilot program planned for the first half of 2022.

This is in addition to extended flow-testing of the Serowe 3 well to better understand water flow rates in the pilot program surface facilities design.

The company added that interpreted natural permeability and high gas contents in the thicker coals encountered in Serowe-3 are an indication that the risk and cost of a commercial development using inexpensive vertical well completions methods can be substantially reduced.

It is free carried for the first $6m of expenditure on the project by its farm-in partner Botala Energy. Pure Hydrogen also have established a 50/50 Joint Venture with Botala Energy to invest in Hydrogen and renewable energy in Southern Africa and looking at the feasibility of facilities in Botswana.

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

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.