HyTerra Expands Nemaha Drilling to Three Wells, Funded by Fortescue

Operational Momentum Builds at Nemaha

HyTerra Limited (ASX – HYT) has announced a significant operational update for its Nemaha Project in Kansas, USA, signalling a notable shift in its exploration strategy. The company’s Murfin Rig 116 has mobilised to the McCoy 1 well site and is preparing to spud the well later this week. This well is not just another drill hole; it represents a milestone as HyTerra moves away from the traditional approach of replicating historical wells and instead embraces a data-driven methodology grounded in geological analysis and proprietary intellectual property.

Data-Driven Exploration Takes Centre Stage

The McCoy 1 well was selected based on encouraging results from a nearby well, Sue Duroche 3, which sits on the same geological structure along the Nemaha Ridge. Crucially, the location was identified through interpretation of HyTerra’s 2023 Xcalibur Airborne Gravity Gradiometry and Magnetic survey, combined with reprocessed legacy seismic data from 2025. This approach underscores the company’s commitment to leveraging advanced geophysical techniques and inhouse expertise to optimise drilling targets, potentially increasing the chances of successful resource discovery.

Expanding the Drilling Program with Strategic Backing

HyTerra has also increased its planned drilling activity from two to three wells between April and July 2025. This expansion is supported by funding from Fortescue Future Industries Technologies Pty Ltd, reflecting growing investor confidence in the project’s potential. Alongside McCoy 1, the Blythe 13-20 well is undergoing conversion to an appraisal well, with a workover rig currently installing downhole monitoring equipment. This installation will provide critical subsurface data to inform an initial testing program once all wells have been drilled and analysed.

Targeting Low-Carbon Hydrogen and Helium

The Nemaha Project focuses on exploring geologic, or “white,” hydrogen and helium; naturally occurring gases that could offer lower production costs and carbon emissions compared to manufactured hydrogen. HyTerra’s 100% ownership and operational control of leases across the Nemaha Ridge position it well within an emerging play fairway that could connect to nearby industrial off-takers, including ammonia manufacturers and petrochemical plants. However, the company remains transparent about the inherent geological and development risks, emphasizing the frontier nature of this sector.

Looking Ahead

As HyTerra embarks on this next phase of exploration, the outcomes of the McCoy 1 drilling and Blythe 13-20 appraisal will be closely watched. These results will be pivotal in validating the company’s data-driven approach and could set the tone for future development and commercialisation of geologic hydrogen and helium resources.