Gold Hydrogen Ltd (ASX:GHY) has released its final hydrogen results of the year, continuing the momentum of the current quarter, showing promise and pointing to global significance, which has seen the share price move from 22 cents to a new high of $1.10.
In particular, the focus is the flagship Ramsay Natural Hydrogen Project and its Ramsay 2 exploration well.
Gold Hydrogen holds one granted petroleum exploration licence (the Ramsay Project - PEL 687) and its two 100%-owned subsidiary companies (White Hydrogen Australia and Byrock Resources) hold an additional seven applications for natural hydrogen exploration within South Australia.
Ramsay 2 journey
The journey at Ramsay 2 began on November 17, 2023, when drilling operations began.
By December 1, 2023, the company reached a significant milestone as the well attained its final Total Depth (TD) of 1,068 metres. The well was meticulously cased and left suspended, laying the groundwork for potential future production testing.
Summary of hydrogen results for Ramsay 1 and Ramsay 2.
“These hydrogen and helium results from Ramsay 2 are truly world-class and ground-breaking," Gold Hydrogen’s managing director Neil McDonald said.
"The drilling of Ramsay 2 and the collection of extensive data during this program has enabled the company to not only confirm and validate the historical results but also identify multiple target zones for both hydrogen and helium. These findings further affirm the global significance of the Ramsay project.”
High hydrogen concentrations
Drilling operations finished on December 1, 2023, marking the completion of the Ramsay 2 well. Logging operations were executed flawlessly, with the well's casing securely cemented, signifying a successful end to this phase.
The analysis post-drilling revealed high hydrogen concentrations, peaking at 86%. These concentrations were observed in the shallow depths, specifically from 194 metres to 536 metres, within the Parara and Kulpara formations.
This discovery not only validated historical results from Ramsay Oil Bore 1 (1931) but also closely aligned with the findings from Ramsay 1 drilled in October 2023. The fractured granitic basement showed promising signs of significant hydrogen levels, a key indicator of the project's prospective resource.
World-class helium concentrations
In addition to hydrogen, the drilling unearthed helium concentrations as high as 6.8% in raw gas, particularly from the Kulpara Formation. These helium values could position the Ramsay Project as a world-class helium venture in a non-petroleum system.
Future flow testing is anticipated to confirm these concentrations and establish their commercial viability.
Rigorous testing procedures
Throughout the drilling process, samples were collected with precision. Tests were conducted by Schlumberger (now NYSE:SLB) and the results were independently validated by a specialised third-party laboratory, ensuring accuracy and reliability.
The drilling process utilised state-of-the-art testing equipment, detecting hydrogen and helium in the mudgas. The samples, gathered from key target zones, indicated multiple hydrogen-bearing layers, resonating with historical data from the original Ramsay oil Bore 1.
Exploration prospects
Despite being only the second well in the company's exploration program, the Ramsay 2 well has revealed the potential for a vast hydrogen reservoir and a prolific helium system at the Ramsay project site.
The data points gathered so far offer promising indications. Further exploration, analysis, and subsequent flow testing are expected to shed more light on this potentially lucrative opportunity.
About Gold Hydrogen
Gold Hydrogen is focused on the discovery and development of world-class natural hydrogen gas in a potentially extensive natural hydrogen province in South Australia.
This region has only recently had its natural hydrogen potential identified by the company. The domestic and global demand for hydrogen, combined with new natural hydrogen exploration techniques and experienced personnel, provides Gold Hydrogen with an extraordinary opportunity to define and ultimately develop a new natural hydrogen gas province.
The combined natural hydrogen permit area of the Gold Hydrogen group is approximately 75,332 square kilometres.
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