Pure Hydrogen (ASX:PH2) reports maiden gas resource for Project Venus, QLD

• Pure Hydrogen (PH2) is trading slightly lower on the ASX today after an independent review of the coal seam gas resources at its Project Venus in Queensland
• The review was taken on by Sproule Inc and reported the 1C, 2C and 3C contingent resources for Project Venus
• These varying resources typically refer to the certainty or probability of the gas project to contain the convertible resource, with 1C the most probably and 3C the least
• Sproule’s review found Project Venus to have 87.7 petajoules in 1C resources, 130.3 petajoules in 2C resources and 157.9 petajoules in 3C resources
• Meanwhile, Pure Hydrogen has recently kicked off a three-month controlled draw-down flow test at its Venus 1 pilot well at Project Venus
• If successful, this test could result in the conversion of a “material” portion of the resources highlighted by the independent review into saleable gas reserves
• Shares in Pure Hydrogen are trading 2 per cent lower this afternoon at 24 cents each

Pure Hydrogen (PH2) is trading slightly lower on the ASX today after an independent review of the coal seam gas (CSG) resources at its Project Venus in Queensland.

The clean energy company said Project Venus contains “high-quality and very prospective” acreage across a 154-square-kilometre area within the Walloon Fairway in the Surat Basin.

Sproule Inc, which took on the independent review of the project’s resources, reported the 1C, 2C and 3C contingent resources for Project Venus. Typically, these varying resources represent the degree of certainty or probability of the gas project to contain the convertible resource, with 1C being most probable and 3C being the least probable.

Sproule’s review found Project Venus to have 87.7 petajoules in 1C resources, 130.3 petajoules in 2C resources and 157.9 petajoules in 3C resources.

Pure Hydrogen Managing Director Scott Brown said the company is pleased with the finding of this independent review.

“Work is also advancing in Botswana as our partner prepares for the drilling program at the Serowe CSG Project there,” Scott said.

“Our CSG assets in the Surat and in Botswana have significant potential and we look forward to reporting on material progress as both work programs advance,” he said.

The company has recently kicked off a three-month controlled draw-down flow test at its Venus 1 pilot well at Project Venus. The company said early results from this testing have seen steadily increasing water flows.

Pure Hydrogen said a successful flow test at the Venus Pilot could result in the conversion of a “material” portion of the contingent resources highlighted by the independent review into saleable gas reserves.

Meanwhile, Pure Hydrogen also owns the Project Jupiter and Project Saturn hydrogen operations.

Pure Hydrogen is the merged entity of Real Energy and Strata-X energy. The two companies formally merged on March 17, 2021, to trade as Pure Hydrogen. The new combined entity has two distinct divisions — hydrogen and natural gas.

All up, PH2 owns five hydrogen projects in eastern Australia and three natural gas projects in Australia and Botswana.

Shares in Pure Hydrogen are trading 2 per cent lower at 1:02 pm AEST, at 24 cents each. The company has a $39.5 million market cap.