Gold Hydrogen is poised to begin flow testing at its Ramsay Project, targeting separate Natural Hydrogen and Helium zones, while advancing green methanol and helium commercialisation studies amid robust market demand.
- Imminent mobilisation of Ramsay flow test program
- Petrophysical reinterpretation boosts reservoir thickness by over 200%
- Soil gas sampling shows record-high Natural Hydrogen levels
- Widespread Natural Hydrogen and Helium confirmed in regional studies
- Green methanol and helium feasibility studies underway
Ramsay Flow Testing Set to Unlock Dual Gas Potential
Gold Hydrogen Ltd (ASX:GHY) is gearing up for a pivotal phase at its Ramsay Project in South Australia, with flow testing operations scheduled to commence by late June 2026. The program will uniquely focus on separate zonal testing of discrete Natural Hydrogen and Helium-bearing formations, marking one of the first comprehensive production-style evaluations of these gases in Australia.
Recent independent petrophysical reinterpretations of wireline data from the Ramsay 3 and Ramsay 4 wells have materially upgraded the test program. Notably, the gross reservoir thickness in Ramsay 3 has increased by more than 200%, revealing additional porous zones primed for flow testing. This enhanced reservoir characterization bolsters confidence in the commercial potential of both gas streams.
Complementing these technical advances, soil gas sampling conducted in March revealed Natural Hydrogen concentrations up to 2,160 ppm, approximately 4,000 times atmospheric background, among the highest reported in Australia using this method. These elevated levels were detected beyond previously known occurrences, suggesting the Ramsay project area may extend further south than earlier assumed. The sampling technique's validation was underscored by detecting high concentrations at the Ramsay 1 well location, a confirmed Natural Hydrogen site.
Regional Fluid Inclusion Studies Confirm Widespread Gas Presence
Gold Hydrogen’s portfolio extends over 77,292 square kilometres, including granted and application licenses across South Australia. Fluid inclusion stratigraphy studies on 51 rock samples from historic wells across the northern Yorke and Fleurieu Peninsulas indicate widespread Natural Hydrogen and Helium occurrences. Elevated gas concentrations were found across diverse lithologies, with Helium levels exceeding background thresholds by more than tenfold in 13 samples.
These findings suggest the potential for combined resource systems and highlight the strategic importance of the Ramsay tests within the broader exploration portfolio. While field activities in these application areas await permit grants, the preliminary desktop work is shaping future target prioritisation.
Strategic Development Initiatives: Green Methanol and Helium Commercialisation
Parallel to exploration, Gold Hydrogen is advancing feasibility assessments for green methanol production and helium commercialisation. Green methanol, a liquid fuel favoured for decarbonising shipping and aviation, benefits from cost-competitive hydrogen feedstock. The company aims to leverage its Natural Hydrogen resources at Ramsay to produce green methanol with potentially superior economics compared to electrolysis-derived hydrogen.
Initial analyses indicate abundant biomass availability on the Yorke Peninsula and favourable renewable energy pricing, supported by accessible port infrastructure. The company has appointed Simon Talbot to spearhead the green methanol initiative, with pilot plant considerations planned post-feasibility study.
On the helium front, global supply disruptions, exacerbated by Middle East instability sidelining roughly 35% of production, and surging demand from AI, medical, defence, and advanced manufacturing sectors underpin a compelling commercial case. Gold Hydrogen is collaborating with Worley on helium production modelling and early development pathways, including fast-tracking helium supply to the Australian domestic market to enhance sovereign capability.
Operational and Financial Snapshot
Engineering preparations for the flow test program are underway, including the design of an integrated fluid management system. Fluid reinjection plans will utilise the Ramsay 1 well, with a temporary pipeline facilitating operations pending regulatory approvals. The company expects to mobilise equipment immediately upon receipt of these approvals.
Financially, Gold Hydrogen reported exploration expenditures of A$5.14 million during the quarter, primarily focused on drilling and related activities at Ramsay. This was partly offset by a A$2.7 million R&D tax incentive refund. No production or development expenditures were recorded, consistent with the project’s early-stage status.
Personnel changes included the appointment of Marshall Hood as Executive Vice President - Operations, bringing over two decades of upstream energy experience, and recognition of CTO Billy Hadi Subrata as the first Fellow of Engineers Australia in the Natural Hydrogen and Helium industry. Meanwhile, Geological Advisor Frank Glass departed following contract expiry.
Navigating Risks and Next Steps
Gold Hydrogen acknowledges geological and development risks inherent to the Ramsay Project, including uncertainties around gas presence, recovery rates, and volumes. Social and environmental challenges arise from proximity to agricultural lands and national parks, necessitating robust community engagement. However, government and industry momentum towards hydrogen as a decarbonisation solution provides a supportive backdrop.
The upcoming flow tests will be critical in assessing commercial flow rates for both Natural Hydrogen and Helium, with potential implications for accelerating helium development as a revenue stream. This strategy builds on prior drilling successes confirming high-purity hydrogen and helium concentrations, as documented in the company’s earlier Ramsay 3 well confirms up to 97% pure Natural Hydrogen and Gold Hydrogen Confirms Strong Hydrogen and Helium Presence at Ramsay 4 Well reports.
Bottom Line?
Gold Hydrogen’s imminent flow tests at Ramsay could redefine Australia’s natural hydrogen and helium landscape, but regulatory approvals and commercial flow results remain key hurdles.
Questions in the middle?
- Will flow testing confirm commercial-scale production of both Natural Hydrogen and Helium at Ramsay?
- How will evolving helium market dynamics influence Gold Hydrogen’s development timeline and strategy?
- What impact will community and environmental considerations have on permitting and project scalability?