HyTerra to expand exploration at Nemaha following second permit approval
White hydrogen and helium explorer HyTerra (ASX: HYT) is set to accelerate its exploration work at the Nemaha project in Kansas with the grant of a further drilling permit.
The company’s wholly-owned subsidiary HYT Operating has received a permit from the Kansas Corporation Commission to drill the Blythe 13-20 well at Nemaha.
The well is set to test an area 1,400m east of the historic Scott-1 well, drilled in 1982, which reported up to 56% hydrogen.
Well-positioned
HyTerra has approximately 6,500 net acres of owned and operated leaseholdings geologically contiguous to this new well and just last week received the green light to drill the Sue-Duroche-3 well at Nemaha.
That well will drill into a target approximately 200m north of the historic Sue Duroche-2 well, which reported up to 92% hydrogen and up to 3% helium in historic analyses in 2009.
The Nemaha project is linked to a long list of potential off-takers connected locally and regionally by existing railways and roads.
Over 35% of the ammonia – a compound of nitrogen and hydrogen primarily used to make fertiliser – produced in the US is sourced nearby to HyTerra’s leases in Kansas.
Numerous candidates
HyTerra executive director Benjamin Mee said Blythe-13-20 includes an extensive portfolio of drilling candidates currently being advanced through the permitting stage leading up to a final ranking and selection for the Q3 2024 drilling campaign.
“The original Scott-2 well only drilled approximately half of the sedimentary section and no basement,” Mr Mee said.
“Like the recently permitted Sue Duroche-3, the planned well trajectories are going much deeper than the neighbouring historic wells to test these deeper sections.”
“Given the geological play diversity available, we will continue the permitting of drilling locations of several independent hydrogen and helium prospects to support the final well selection for the company’s upcoming exploration program.”
Market appetite
As has been seen by the recent international interest in Gold Hydrogen (ASX: GHY), there is a real market appetite for both clean (white) hydrogen and helium.
White hydrogen is formed by natural processes and is being increasingly targeted due to its non-pollutant potential, which may also offer lower costs than industrial hydrogen.
The cost of helium has increased by 250% over the last five years according to the American Chemical Society, making scientific research more expensive.
In 2023, consumption of helium in the US amounted to 59 million cubic metres, the highest volume recorded during the period of consideration.