HyTerra gears up for Nemaha project drilling campaign with $6.1m funding
HyTerra (ASX: HYT) is cashed-up ahead of an upcoming exploration drilling campaign at its Nemaha project in Kansas.
After a successful placement and underwritten rights issue raised approximately $6.1 million, the company is on target to start drilling at Nemaha in early September.
The company’s 100%-owned and -operated subsidiary HYT Operating recently received official approvals from the Kansas Corporation Commission for the drilling of the Sue Duroche-3 and Blythe 13-20 wells.
Local contractor signed
The company has engaged local contractor Murfin Drilling to undertake its drilling plans, which may expand with the receipt of further government approvals.
The Sue Duroche-3 and Blythe 13-20 wells are part of an extensive portfolio of drilling candidates currently being advanced through the permitting stage within HyTerra’s acreage.
Executive director Avon McIntyre said Nemaha provides direct access to an established, growing and maturing hydrogen market.
“The company can pursue opportunities faster than most countries right now, because of the infrastructure, the evolved market and a supportive regulatory set-up,” he said.
“The diversity of geological plays within HyTerra’s […] leases allows it to rank several independent hydrogen and helium prospects for the company’s upcoming exploration program.”
“The highest-ranked prospects will be drilled first.”
Energy revolution
“The company stands at the forefront of a groundbreaking energy revolution, harnessing the power of white – or naturally occurring – hydrogen and helium to pave the way for a sustainable future,” Mr McIntyre declared in the company’s June quarterly report.
“Hydrogen is the world’s wonder element [that] has the potential to help decarbonise the planet and support the transition to net-zero emissions.”
The demand for hydrogen reached an estimated 87 million tonnes in 2020 and is expected to grow to as much as 580Mt by 2050.
“Today, hydrogen is used to refine oil and produce ammonia and methanol,” Mr McIntyre said.
“Tomorrow, it will be an energy-dense, low-carbon fuel option for transportation and manufacturing and used to store and generate electricity.”