HyTerra targets strong year-end as Fortescue backs white hydrogen push in Kansas
HyTerra (ASX: HYT) is preparing for a strong finish to 2024 in its hunt for high-value white hydrogen in the US.
Releasing its latest quarterly report, the Australian junior highlighted the strong platform it has built to accelerate drilling at its large Kansas hydrogen exploration position.
The key to the future timeline for exploration at its Nemaha project now lies with the finalisation of an agreement to receive $21.9 million in funding from Australian mining and energy giant Fortescue (ASX: FMG).
Acreage acquisition
Fortescue’s capital injection is aimed at supporting further acreage acquisition and expanding the number of wells to be drilled.
During the recently completed quarter, HyTerra significantly increased its exploration position and then added a further 13,000 acres of additional leases post-reporting period, taking the total lease position to approximately 52,000 acres.
Executive director Avon McIntyre said the proposed investment by Fortescue for a 39.8% strategic interest in the company is a testament to the hard work and performance of the HyTerra team and the diverse geological plays available within the Nemaha leases.
Strategic support
“The proposed collaboration with Fortescue brings not only capital but also strategic support, enabling us to explore new opportunities and leverage their expertise in developing sustainable energy solutions,” Mr McIntyre said.
He added that the newly acquired leases open up additional drilling targets that will be added to the drilling program pending a positive result from shareholder voting on the Fortescue acquisition.
“This strategic growth enables us to increase our drilling programs, moving forward with more confidence and precision.”
Drilling program
Adding the additional acreage will boost the company’s upcoming drilling program, with the previously proposed two-well drilling campaign now replaced by a six-well campaign expected to commence in Q4 2024.
The new areas acquired have significant seismic coverage, providing valuable insights for the drilling plan.
The program will commence at two sites near historic wells, targeting historic hydrogen and helium discoveries at Sue Duroche-2 and Scott-1 but will also test deeper play opportunities using modern drilling and testing technologies.
It will begin sometime following the extraordinary general meeting scheduled for December to consider Fortescue’s strategic investment.