Hyterra and Twiggy (and his $21.9M) to test McCoy-1 hydrogen well together

The Andrew “Twiggy” Forrest-backed HyTerra Limited (ASX: HYT) is now preparing to undertake the next phase of production testing at its high-profile Nemaha hydrogen and helium project in Kansas for CY25.

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With $21.9 million of Mr Forrest’s funds in hand, HyTerra has drilled three wells to test for hydrogen and helium in an area that has historically been known for its potential to contain the valuable industrial gases.

For HyTerra and Twiggy, the CY25 exploration well program identified elevated hydrogen and helium gas shows and confirmed flow potential.

The highlight of HyTerra’s recent drilling program was the McCoy-1 well, which was a milestone for the company as it marked a transition away from validating historical wells to selecting locations based on proprietary geological interpretation and internally developed targeting methodology.

Identified by interpretation of airborne gravity and magnetic surveys, McCoy-1 was drilled to a total depth of 1,695m; HyTerra’s deepest to date.

Notably, the well was drilled through approximately 435 metres of sedimentary rocks and 1,260 metres of Precambrian basement.

HyTerra’s Sue Duroche-3 well has already confirmed the flow potential of the Precambrian basement, and the company is aiming to further appraise the dynamic hydrogen and helium flow potential with the McCoy-1 program.

Based on monitoring data, HyTerra elected to conduct a production test to progress the project through the appraisal phase toward the next decision gate.

Production testing is intended to determine representative formation gas composition, assess sustainable hydrogen and helium flow rates and validate reservoir pressure behaviour and connectivity.

HyTerra is not the only explorer that has recently targeted Kansas for helium and hydrogen. The state has established hydrogen demand through ammonia production and other industrial processes located throughout the region. It is also a major transportation crossroads in the midwestern U.S., with hydrogen being considered as a heavy-vehicle transportation fuel.

HYT is down -12.5%, to 1.4c. Mkt cap $26.68M.

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