Helium Discovery in Kansas Raises Questions on Commercial Viability

A New Helium Frontier in Kansas

HyTerra Limited has announced a noteworthy discovery of helium concentrations reaching 4.4% in the Blythe 13-20 well, located in Eastern Kansas. This level of helium presence is unprecedented in this part of the state and significantly extends the known helium play beyond the Sue Duroche 3 area. Alongside helium, hydrogen concentrations peaked at 16.5%, underscoring the dual potential of this geological formation.

The Blythe 13-20 well was drilled to a depth of 5,300 feet, penetrating both sedimentary rocks and the Pre-Cambrian basement. The well site lies approximately 1,400 meters east of the historic Scott-1 well, which had previously recorded hydrogen concentrations but no helium in the sedimentary section. The new data suggest a possible migration pathway for helium and hydrogen between the Mid-Continent Rift and the Nemaha Ridge, two major geological features in the region.

Strategic Importance of Helium

Helium is a critical resource for a range of advanced industries, including semiconductor manufacturing, aerospace, medical imaging, and quantum computing. Its unique inertness and cryogenic properties make it irreplaceable in many applications. Kansas is the leading helium producer in the United States, with decades of production history centered on the Hugoton natural gas field, where helium concentrations typically range from 0.25% to 2.5%. The discovery at Blythe 13-20, with concentrations nearly double the upper range of Hugoton, highlights the potential for new helium sources in the region.

HyTerra’s drilling program, funded by Fortescue Future Industries Technologies Pty Ltd, reflects growing investor interest in low-carbon energy resources. The company plans to convert Blythe 13-20 into an appraisal well, installing downhole monitoring equipment to gather detailed data that will inform an initial testing program. This step is critical to assessing the commercial viability of the helium and hydrogen resources.

Looking Ahead – Unlocking the Nemaha Ridge Potential

Executive Director Avon McIntyre emphasized the significance of the discovery, noting that the company is shifting focus from replicating historic wells to exploring new targets such as McCoy 1 on the Nemaha Ridge crest. This approach aims to unlock the broader potential of the natural hydrogen and helium play fairway that HyTerra controls.

While the discovery is promising, the company acknowledges the inherent geological and commercial risks associated with emerging resource plays. The next phases of appraisal and testing will be crucial in determining whether these helium concentrations can translate into economically recoverable reserves.

Overall, HyTerra’s findings reinforce Kansas’s role as a strategic helium hub and highlight the growing importance of helium and hydrogen in future-facing industries. The coming months will be pivotal as the company advances its appraisal program and refines its understanding of this exciting new resource.