HyTerra expands US hydrogen position at Nemaha with major acreage acquisition

HyTerra (ASX: HYT), the first ASX-listed company to explore for “white” hydrogen in the US, has significantly increased its exploration position by adding approximately 26,200 acres to its Nemaha project in Colorado.

This expansion brings the company’s total exploration lease position from 12,880 acres to approximately 39,000 acres.

The leases are in the highly-prospective Washington and Marshall Counties above the Mid-Continent Rift, considered to be the generation zone for hydrogen in the area.

Major drilling campaign

Executive director Dr Avon McIntyre said the recent backing from Andrew Forrest’s Fortescue and the new acreage position HyTerra nicely for a major drilling campaign.

“Securing significant acreage now, prior to the upcoming drilling, is key for adding value to shareholders,” Dr McIntyre said.

HyTerra has engaged corporate finance specialist Stantons to assist with preparing an independent experts report on the Fortescue proposal, with an extraordinary general meeting expected to be held in November for shareholders to vote on the deal.

“In anticipation of a positive outcome at the upcoming vote on Fortescue’s 39.8% strategic interest acquisition in HyTerra—which includes funding for a six-well drilling program—we will continue to in-fill lease in the area and work up drillable locations over the coming weeks to add to our growing portfolio of geologically diverse drilling targets.”

Prime location

Dr McIntyre noted that HyTerra’s predictive model for white hydrogen and helium in Kansas highlighted this area as particularly prospective and that the company is pleased to have executed the acquisition in record time.

“This was only possible through funds raised earlier this year and the sterling efforts of our local Kansas-based leasing team, who have helped us triple our acreage position in less than two months.”

Numerous historic hydrogen occurrences in the area are believed to originate from the iron-rich rocks within the Rift and migrate upward along faults towards the crest of the Nemaha Ridge to the east, the highest structural feature in the region.