Hydrogen Well Testing Challenges Loom as HyTerra Advances Nemaha Exploration

Operational Progress at Nemaha

HyTerra Limited (ASX: HYT) has provided a significant update on its Nemaha Project in Kansas, USA, underscoring the company’s methodical approach to unlocking natural hydrogen and helium resources. The Sue Duroche 3 exploration well, drilled to a depth of 1,052 meters, is now being re-entered and converted into a monitoring well. This move comes just two weeks after reaching total depth, reflecting encouraging initial gas readings and the company’s commitment to gathering long-term data.

The conversion to a monitoring well is a strategic step designed to collect surface pressure and gas composition data over the coming months. This intermediate phase is critical because, unlike conventional hydrocarbons, there is no established methodology for testing hydrogen wells. The data collected will inform the planning and execution of an extended well test, which is essential to evaluate the commercial viability of the resource.

Hydrogen and Helium Signals

During drilling, mud gas logs revealed elevated hydrogen concentrations, with independent laboratory verification showing hydrogen levels as high as 96.1%. Additionally, elevated helium readings were detected deeper in the Pre-Cambrian basement, with final lab analyses from Isotech Laboratories expected imminently. These findings highlight the dual potential of the Nemaha Project to tap into both natural hydrogen and helium, a combination that could enhance the project's commercial appeal.

Next Drilling Phase and Seismic Survey

Looking ahead, the Blythe 13-20 well is scheduled to spud around May 20, 2025. Positioned approximately 1,380 meters east of a historic well known for hydrogen presence, this well aims to deepen understanding of the geological units most prospective for hydrogen and helium. Drilling is expected to take three to four weeks, with subsequent monitoring planned if results prove promising.

Complementing the drilling activities, HyTerra has completed a seismic acquisition program in a new greenfield area within the Nemaha Project. Conducted on time and within budget, this survey will support the identification of future drilling targets and expand the company’s exploration footprint.

Strategic and Industry Context

HyTerra’s 12-month exploration program is funded by Fortescue Future Industries Technologies Pty Ltd, reflecting growing investor interest in natural hydrogen as a low-carbon energy source. Executive Director Benjamin Mee emphasized the pioneering nature of the work, noting the absence of established testing protocols for hydrogen wells and the importance of the monitoring phase to optimize future testing. The company’s progress signals a methodical and data-driven approach to developing what remains an emerging frontier in energy exploration.

While the results so far are promising, the company acknowledges the inherent geological and commercial risks. The coming months will be critical as monitoring data accumulates and further drilling results emerge, shaping the path toward potential commercialisation.