Pure Hydrogen’s ongoing drill program at the Serowe coalbed methane project in Botswana has returned a result that exceeds its pre-drill expectations.

The Serowe-3 well was drilled to a depth of 477m and intersected 41m of gassy coal seams, more than twice as thick as the company’s pre-drill estimates.

Pure Hydrogen (ASX:PH2) adds that a short-term flow test resulted in the flow of about 54 barrels of water per day, indicating that there is natural permeability in the intersected coals.

This is a big positive given that coalbed methane – or coal seam gas – wells typically require fracture stimulation before they start producing water, the de-watering process that occurs to reduce pressure before gas can be produced in any significant quantities.

Additionally, the thicker coal intersections and permeability encountered in the well improves the potential for commercial development of the prospective 2.38 trillion cubic feet of gas resources certified at the project.

Managing director Scott Brown said encountering much thicker coals and natural permeability was an excellent result that exceeded its pre-drill expectations.

“This bodes very well for the remainder of the Serowe Project Appraisal program which continues in the next few weeks,” he added.

“The current drilling program is looking more likely to confirm the presence of a very large and potentially commercial gas field at the Serowe Project.

“The Serowe Project is well supported by the Botswana government and other stakeholders who are keen on divesting from coal and imported fuels thereby creating strong demand for natural gas.”

Pure Hydrogen noted that wireline logging included a new tool and method that – after post logging processing – can estimate gas contents of the coals.

Should this method be successful, the company expects that it will need fewer expensive core holes and analysis to certify reserves.

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

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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