Gold Hydrogen Ltd (ASX:GHY) is trading higher after confirming natural hydrogen at up to 86% purity and helium up to 17.5% — amongst the highest purity levels globally — from its Ramsay 1 and 2 wells on the Yorke Peninsula of South Australia.
The primary objective of the Ramsay 1 and Ramsay 2 well-testing program is to obtain gas and fluid samples for compositional and isotopic analysis, which will be undertaken by established local and international third-party laboratories.
While the initial testing program achieved this, further samples will be collected once testing activities resume in April.
The well testing program’s secondary objectives include the recovery of natural hydrogen and helium at surface from reservoir fluid and gas inflow into the well bore, and quantifying the inflow rates.
These objectives were also achieved in the initial testing program and will also continue once testing resumes.
Testing and analysis to date — following the drilling of both Ramsay 1 and Ramsay 2 — has confirmed up to 17.5% purity for helium in a sample taken from the Ramsay 2 well, on an air-corrected basis.
This sample provides clarification of the results previously disclosed by the company and these results are believed to be amongst the highest ever recorded purities for helium in the world.
The results demonstrate that the formation is permeable and is producing fluids and gas from all of the formations tested to date, and has produced both natural hydrogen and helium to the surface.
Permeability and ability to flow gas to surface was one of the key objectives of testing, and a significant derisking milestone for Gold Hydrogen.
A “truly amazing” result
Gold Hydrogen managing director Neil McDonald said: “To have found and confirmed both natural hydrogen at up to 86% purity and helium up to 17.5% air-corrected purity in our Ramsay 1 and 2 wells is truly amazing.
“And to also evidence from our Stage 1 well testing that we are recovering both Natural Hydrogen and Helium to surface from multiple formations at such an early testing stage indicates that we are well on the journey to produce both natural hydrogen and Helium at commercial levels as we ultimately progress.
“We have very large prospective resources for both gases, and that is only over a portion of the Ramsay Project permit. We look forward to the recommencement of testing in April.”
Investors have also welcomed the results with shares as much as 15.9% higher intra-day to A$1.495.
Well testing nears completion
The successful exploration well testing operations — which are pioneering for both natural hydrogen and helium in a non-petroleum system — are now nearing completion at the site of the company’s successful Ramsay 1 and Ramsay 2 exploration wells.
Operations have now been suspended to provide the crews with a mandatory work break and will resume after Easter.
The well-testing data obtained will enable Gold Hydrogen to better understand the characteristics of the natural hydrogen and helium reservoirs.
This data will assist in gaining technical insights into how the Ramsay Project area could be further explored and appraised, including future well designs and testing designs, as well as providing input for a future pilot plant/proof-of-concept plant design.