HyTerra’s High-Grade Hydrogen Finds Raise Stakes Amid Commercial Uncertainty

Exploration Milestones at Nemaha

HyTerra Ltd has marked a pivotal quarter at its flagship Nemaha Project in Kansas, USA, transitioning from planning to active drilling and appraisal. The Sue Duroche 3 well, drilled to 1,052 meters, revealed exceptionally high hydrogen concentrations reaching 96%, alongside helium levels up to 5%. These results not only validate the presence of geologic hydrogen but also prompted the immediate conversion of the well into an appraisal phase to assess flow test viability.

Following this success, the Blythe 13-20 well was drilled to 1,615 meters, uncovering hydrogen concentrations peaking at 16.5% and helium at 4.4% in basement formations. This well, located near historic sites with known hydrogen occurrences, was also converted to appraisal status, underscoring the company's confidence in the resource potential.

Strategic Expansion and Data-Driven Targeting

Building on these encouraging outcomes, HyTerra has added a third well, McCoy 1, to its drilling program. Positioned approximately 9 kilometers east of Sue Duroche 3 on the same fault block, McCoy 1 represents a strategic shift from replicating historic wells to targeting structurally defined prospects informed by proprietary geophysical data. This approach leverages airborne gravity-magnetic surveys and reprocessed seismic data, reflecting a sophisticated, data-driven exploration methodology.

Supporting these drilling efforts, HyTerra completed extensive geophysical surveys, including a 10,000-line kilometer airborne gravity-magnetic survey and a targeted seismic acquisition campaign. These datasets are critical for generating new prospects and refining the geological model for subsequent exploration phases.

Progress Beyond Kansas – Geneva Project Update

In Nebraska, HyTerra holds a 16% interest in the Geneva Project through a joint development agreement with Natural Hydrogen Energy LLC. Recent gas analyses from the Hoarty NE3 well indicate hydrogen concentrations up to 44% and helium up to 12.8%, although further appraisal is needed to confirm commercial viability. This project complements HyTerra's broader strategy of unlocking natural hydrogen and helium resources near major industrial hubs in the United States.

Financial Discipline and Outlook

HyTerra ended the quarter with a cash balance of A$11.34 million, having invested A$5.54 million in exploration activities. The company maintains a disciplined capital management approach, balancing aggressive exploration with prudent financial stewardship. Executive Director Avon McIntyre highlighted the team's commitment to safety, technical rigor, and methodical progress as key to unlocking the potential of natural hydrogen and helium.

While the promising gas concentrations mark significant progress, the company acknowledges ongoing geological and commercial risks inherent in this emerging frontier. The next critical steps involve flow testing and further appraisal to validate resource recoverability and economic potential.