Gold Hydrogen resource report positions Ramsay as potential world-class helium project

Gold Hydrogen (ASX: GHY) has compiled a prospective resource report for helium across a 2,000 square kilometre section of the company’s flagship Ramsay project on South Australia’s Yorke Peninsula.

The report features a mean estimate of 96 billion cubic feet of helium over approximately 25% of the project area which, if replicated across the entire tenement, could potentially make Ramsay a world-class helium project.

Gold Hydrogen noted that estimated quantities of helium that might be recovered by the application of a future development project relate to undiscovered accumulations.

Further exploration, appraisal and evaluation will be required to determine the existence of a significant quantity of potentially-recoverable helium.

The company has previously confirmed helium concentrations of up to 6.8% in raw gas from the project’s Kulpara Formation.

Well testing

Testing for the Ramsay 1 and 2 wells is scheduled for next month with the aim of collecting fluid and gas samples and measuring gas compositions, pressures and flow rates, as well as supporting a future appraisal and development strategy, along with a potential proof-of-concept facility design.

Exploration flow testing is also expected to provide valuable data and assist with confirming helium concentrations and flow rates.

Despite only two wells being drilled in the project area, Gold Hydrogen said multiple data points had indicated the potential for a laterally-extensive hydrogen reservoir and a prolific helium system at the site.

Managing director Neil McDonald said the company had obtained world-class results for the resource report.

“Our independent certifiers have been able to review all the historical and current data.”

“To have them assess that we have 96Bcf of helium (mean) on the Ramsay project, which only covers […] 25% of this granted permit, is an exceptional result and a huge value-add to our company.”

“Considering, helium projects are commercial around the world from 1% purity raw gas and we have reported 6.8% purity, […] combining this with a market where helium on a longer-term basis to sell for US$450 per million cubic feet, we may well have a world-class helium project […] with scale.”

Demand on the rise

Extracting “green” helium from an area such as Ramsay – which has no petroleum system – is potentially ground-breaking, with 95% of helium currently produced from petroleum and fossil fuel environments.

As helium is extremely rare and expensive, markets generally determine pricing on a contract-by-contract basis.

Global demand for the commodity was estimated to be around 6Bcf in 2023, with annual demand expected to increase at a rate of up to 5% per year.