The South Australian Government Department of Energy and Mines has granted Gold Hydrogen Ltd (ASX:GHY) its first necessary approval related to planned drilling activities at its Ramsay Natural Hydrogen Project.
This marks a significant milestone for the company as it begins site operations and construction of the Ramsay 1 well site drilling pad on the Yorke Peninsula.
Looking ahead, Gold Hydrogen remains on track to spud Ramsay 1 in mid-October and it will be Australia’s first dedicated natural hydrogen well.
Primary objectives
The primary objective of the Ramsay 1 well is to confirm the presence of hydrogen in the subsurface geologic formations.
The company aims to do this by replicating the identification of hydrogen gas encountered during the drilling of the historic Ramsay Oil Bore 1 back in 1931 and to more broadly confirm geological modelling based on the exploration data obtained during the past year.
Confirming the presence of hydrogen is the first step to achieving Gold Hydrogen’s Ramsay Project objectives.
Forward plan
With this initial approval in place, a local civil construction company has been mobilised, and well pad construction will commence today on the Ramsay 1 well site.
After completing the Ramsay 1 site, equipment will be moved to the proposed Ramsay 2 site, with construction activities scheduled to kick off next week.
The company expects to see significant cost savings in building both well sites at the same time.
Rig mobilisation is planned for the second week of October, and the company is on track to spud Ramsay 1, subject to final approval expected in the next weeks.