HyTerra cheers leading US hydrogen and helium levels at Sue Duroche-3

• HyTerra laboratory analysis of Sue Duroche-3 well returns concentrations of up to 96% hydrogen and 5% helium
• Results validate historical occurrences of up to 92% hydrogen and 3% helium in the Sue Duroche-2 well
• Concentrations are amongst the highest reported in the US and represent a great start to exploration

Special Report: Laboratory analysis of mud gas samples from the Sue Duroche-3 well has more than validated HyTerra’s belief in the hydrogen and helium prospectivity of its Nemaha project in Kansas.

Independent laboratory analyses have returned concentrations of up to 96% hydrogen and 5% helium from the mud samples collected after the well was drilled to its total depth of 1052m.

This is cause for cheer for HyTerra (ASX:HYT) as the results not only validate historical occurrences of up to 92% hydrogen and 3% helium measured in the Sue Duroche-2 well drilled in 2009, they are also amongst the highest such values ever reported in the US.

Having such high hydrogen concentrations bodes well for the company’s plans to deliver natural (white) hydrogen to nearby industrial customers to replace the use of fossil-fuel derived hydrogen in their processes.

Meanwhile, the helium is a valuable product in its own right as it can command a price of between US$400 and US$500 per thousand cubic feet of gas for longer-term contracts due to its irreplaceable use in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines.

This compares with the current Henry Hub natural gas spot price of ~US$3.42 per million British thermal units (981 cubic feet of gas).

Highlighting the high value of helium, natural gas containing more than 0.3% helium is considered economic for helium extraction in the US though this is subject to the other products in the gas stream and flow rates.

Watch: HyTerra spins up for hydrogen in the Sunflower State

A great start

Executive director Benjamin Mee said the result was a great start to the company’s exploration program.

“Seeing concentrations of both hydrogen and helium in the mud gas in the same well is advantageous and, arguably, unique,” he added.

“We are in the right jurisdiction for this combination and are glad we turned Sue Duroche 3 into a pressure and gas monitoring site quickly. We keep executing the plan to unlock the potential of clean hydrogen and helium in Kansas.”

Sue Duroche-3 was converted into a long-term surface pressure and gas monitoring well to enable the company to make an informed decision on an extended testing program.

The company has also just spudded the Blythe 13-20 well – the second of the two planned initial wells – about 1380m east of the historical Scott-1 well that reported hydrogen concentrations of up to 56%.

Nemaha sits at the centre of a major industrial and manufacturing hub between Kansas City and Wichita, placing it close to existing railways, roads and pipelines that connect to a long list of potential offtakers.

This article was developed in collaboration with HyTerra, 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.