Australia’s HyTerra (ASX: HYT) is making strong progress in its preparations for a highly anticipated drilling campaign at its growing “white” hydrogen project in the US.
With Australian mining powerhouse Andrew Forrest proposing to invest $21.9 million in HyTerra’s Kansas exploration plans, the energy company is now looking to triple the number of wells it will drill in a maiden program set to commence later this year.
HyTerra has already used the boost provided by Mr Forrest’s backing to increase its prime white hydrogen position, recently adding a further 13,000 acres to its Nemaha project.
Acreage acquisitions
HyTerra currently holds approximately 52,000 exploration acres at Nemaha following the successful recent application for new infill leases.
There is a strong likelihood their landholding will continue to grow, with acreage acquisition being a component of the Fortescue investment.
Adding the additional acreage will expand the company’s upcoming drilling program, with the previously proposed two-well drilling campaign now to involve six.
Reprocessed data
The new areas acquired have had significant seismic coverage, providing HyTerra with the confidence to add them to Nemaha.
The company’s subsurface team has identified the area as being particularly prospective for hydrogen and helium.
Reprocessing of seismic data has also provided increased assurance, with the improved imaging quality revealing a number of candidates for the upcoming drilling campaign.
Historical wells
The program will kick off at two sites where historical wells are planned to be drilled significantly deeper than in previous campaigns.
The two initial wells will target hydrogen and helium discoveries at Sue Duroche-2 and Scott-1 but will test deeper play opportunities using modern drilling and testing technologies.
The planned drilling campaign will commence following an extraordinary general meeting to be held in December to consider Fortescue’s strategic investment.
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