This marks the first steps for the company in executing a comprehensive 12-month work plan designed to unlock the potential of natural (white) hydrogen in Kansas through its 100% owned and operated Nemaha Project through its 100% owned and operating subsidiary, HYT Operating LLC.
HyTerra Executive Director Benjamin Mee said “this drilling campaign marks a major milestone for HyTerra as we leverage our significant lease position through a comprehensive staged exploration program targeting both hydrogen and helium gases.”
The Stage I exploration program will commence with two back-to-back wells spudding in April 2025 with the option to drill a third well at the company’s discretion. The Kansas Corporation Commission has approved well permits for all potential well locations, allowing the Company to choose the highest priority targets to drill first. In addition, infill leasing will continue across priority areas.
The Stage II exploration program will commence with geophysical programs in March to May to support leasing and future wells planned to be drilled in the second half of 2025. The aerial surveys begin this month and seismic surveying is currently being planned.
Drilling campaign update
As weather conditions improve, Murfin Drilling Company is preparing to commence final testing of the rig before moving to the first well site. The rig inspection process is a key step in ensuring a safe drilling program, with mobilisation set to follow shortly thereafter. The Company is continuing to work through several high priority targets with the well locations to be announced in the coming weeks.
The primary objectives of the drilling program are to obtain key subsurface data for hydrogen and helium, including mud gas samples, wireline logs, and an in-depth understanding of reservoir characteristics.
The company has selected Kansas based Murfin Drilling Company for well operations and SLB for geological data collection and analysis. The results of the wells will be used to prioritise follow up drilling locations.
The drilling program will be executed in a three-step process for each well. Each step informs the execution (or not) of the next step:
1. Exploration Drilling – A conventional oil and gas rig, modified for hydrogen work, will be used to drill and sample the wells.
2. Data Gathering – Following drilling, data gathering and subsurface analysis will be conducted to refine the geological model and support further exploration expenditure. This may include post well monitoring.
3. Extended Production Testing – Based on drilling and data analysis results, a decision will be made on an extended production testing program on selected wells to assess the potential for sustained hydrogen production.
Geophysical survey update
HyTerra has entered into an agreement with New Resolution Geophysics (NRG) to conduct a large-scale, high-resolution gravity and magnetic aerial survey within the Nemaha Project area. The survey covers approximately 10,000-line kms and is expected to commence in the coming weeks and be completed in April.
The Company selected NRG as they are specialists in airborne geophysical surveys, including ultra-high resolution data collection. With a fleet of advanced helicopters and fixed-wing aircraft, NRG operates across the USA, Africa and Australasia, delivering precise and efficient survey solutions.
In addition to the aerial survey, the company has entered into a services agreement with Kansas-based Paragon Geophysical Services to help plan and acquire seismic surveys in the Nemaha Project area. Paragon Geophysical Services has worked in over 25 US states and in the past 10 years has completed seismic programs in >60 Kansas counties.
The data obtained from such surveys, combined with the initial drilling results, will be used to refine well locations for the Exploration Stage II drilling program.
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