HyTerra Prepares McCoy-1 Production Test to Unlock Hydrogen Potential

HyTerra Advances Geologic Hydrogen Ambitions

HyTerra Limited (ASX – HYT) has announced plans to conduct a production test at its McCoy-1 well in the Nemaha Ridge area of Kansas during the second quarter of 2026. This test is designed to assess the flow characteristics and concentrations of naturally occurring hydrogen and helium gases, a crucial step in the company’s broader strategy to commercialise geologic hydrogen resources.

The McCoy-1 well, drilled to a depth of 1,695 metres, is HyTerra’s deepest to date and has already demonstrated promising elevated hydrogen and helium gas shows during initial flow monitoring. The well targets the Precambrian basement formation, which is believed to be a significant source of these gases. The upcoming production test will provide more definitive data on sustainable flow rates, reservoir pressure behaviour, and overall well integrity.

Strategic Context and Exploration Progress

This production test follows a series of exploration wells drilled across the Nemaha Ridge, including Sue Duroche-3 and Blythe 13-20, which collectively confirmed the presence and flow potential of hydrogen and helium. HyTerra’s approach combines proprietary geological interpretation with advanced airborne gravity and magnetic surveys, enabling targeted drilling and appraisal within its 5,868-acre lease holdings.

Complementing field activities, laboratory experiments at the University of Colorado-Boulder are underway to measure the hydrogen generative potential of rock samples from McCoy-1. These experiments aim to deepen understanding of the geological processes that produce hydrogen, informing future leasing and exploration strategies across multiple US states.

Market and Commercial Implications

Kansas presents a compelling market for geologic hydrogen, with established industrial demand, including ammonia production, and strategic transport infrastructure. Additionally, the state’s long history as a helium production hub adds value to HyTerra’s dual focus. Helium extraction economics are influenced by gas concentrations and flow rates, factors that the McCoy-1 production test will help clarify.

HyTerra’s phased commercialisation plan hinges on progressing from exploration and appraisal to production testing, with the McCoy-1 test serving as a critical decision point. The company aims to validate reservoir connectivity and performance, which will underpin go/no-go decisions for further development and drilling within its leases.

Looking Ahead

With equipment procurement underway and detailed test design finalised, HyTerra is positioned to commence the McCoy-1 production test after the winter season. The outcomes will be closely watched by investors and industry observers as indicators of the viability of geologic hydrogen as a low-carbon energy source and the potential for scaling production in the Midwestern United States.