McCoy 1 Drilled to 1,695m with Hydrogen up to 83% and Helium 5%
HyTerra Limited’s McCoy 1 well in Kansas has confirmed significant concentrations of geologic hydrogen and helium, advancing the company’s exploration ambitions with appraisal activities now underway.
- McCoy 1 drilled to 1,695m on time, on budget, no HSE incidents
- Hydrogen concentrations up to 83%, helium up to 5% verified in mud gas samples
- Well located 9 km from Sue Duroche 3, confirming broader play potential
- 3,116 contiguous net acres secured near major Interstate Highway I70
- Workover rig converted McCoy 1 to appraisal well; production testing planned
Exploration Success at Nemaha Project
HyTerra Limited has announced promising results from its latest well, McCoy 1, drilled at the Nemaha Project in Kansas, USA. The well reached a depth of 1,695 metres, successfully confirming the presence of geologic hydrogen and helium within both sedimentary and Pre-Cambrian basement rocks. The drilling was completed on time, within budget, and without any health, safety, or environmental incidents; a notable achievement in frontier energy exploration.
McCoy 1 is situated approximately nine kilometres southeast of the previously drilled Sue Duroche 3 well, which had reported even higher hydrogen concentrations of up to 96%. The confirmation of elevated hydrogen (up to 83%) and helium (up to 5%) concentrations at McCoy 1 reinforces the potential extent of this emerging hydrogen-helium play within the Nemaha Ridge geological structure.
Strategic Location and Infrastructure Advantage
The well site benefits from a strategic location with 3,116 contiguous net acres under HyTerra’s control, positioned adjacent to Interstate Highway I70. This major arterial route stretches approximately 3,500 kilometres across ten US states, offering significant logistical advantages for future development and transport of produced gases. The proximity to established industrial hubs and potential off-takers such as ammonia manufacturers and petrochemical plants adds a commercial dimension to the project’s appeal.
From Exploration to Appraisal
Following drilling, a workover rig was deployed to convert McCoy 1 into an appraisal well. This involved cleaning out the well bore and installing downhole monitoring equipment to assess the inflow potential of the Pre-Cambrian basement formations. The successful completion of these operations marks a critical step towards understanding the well’s production capabilities.
HyTerra’s Executive Director, Benjamin Mee, highlighted the significance of the findings and the quality of data collected across three wells drilled in quick succession. He emphasized that while the elevated gas shows are encouraging, a production test program is essential to determine steady-state flow rates and gas compositions, which will ultimately inform commercial viability.
Context Within the US Helium Market
Elevated helium concentrations are particularly noteworthy given Kansas’s status as a leading helium producer in the United States, with decades of production from the Hugoton natural gas field. Helium concentrations in that field typically range from 0.25% to 2.5%, making HyTerra’s findings of up to 5% helium in McCoy 1 quite significant. This could position the Nemaha Project as a valuable source of both low-carbon hydrogen and helium, gases critical for various industrial and technological applications.
Looking Ahead
With the drilling and initial appraisal phases complete, HyTerra is now focused on integrating data from all wells to design a production testing program. This next phase will be pivotal in confirming the commercial potential of the Nemaha Project. The company’s exploration efforts are supported by funding from Fortescue Future Industries Technologies, underscoring growing investor interest in geologic hydrogen as a low-carbon energy source.
While the results so far are promising, HyTerra acknowledges the inherent geological and development risks associated with this emerging frontier. The company remains cautious but optimistic as it advances towards production testing and potential commercialisation.
Bottom Line?
HyTerra’s next production tests will be crucial to unlocking the commercial promise of Kansas’s geologic hydrogen and helium resources.
Questions in the middle?
- What steady-state gas flow rates will McCoy 1 deliver during production testing?
- How will HyTerra leverage its strategic acreage and infrastructure proximity for commercial development?
- What are the timelines and investment requirements for moving from appraisal to production?