Gold Hydrogen Ltd (ASX:GHY) has completed Stage 1 well testing at its Ramsay Project on the Yorke Peninsula in South Australia, delivering “a remarkable result” with the Ramsay 1 and Ramsay 2 wells returning world-leading natural hydrogen and helium purity levels at 17.5% helium and 95.8% for natural hydrogen (both air corrected).
This well-testing program is the first dedicated natural hydrogen and helium well-test operation conducted in Australia and is likely one of only a few in the world.
The Ramsay 1 well test was conducted as an open hole well test to test formation inflow. Nitrogen injection was used to clean up the well and remove any fluids that remained downhole.
It was revealed that the formation was quite permeable, as there was formation fluid influx coming into the well after the nitrogen lift, with natural hydrogen recovered at surface.
The Ramsay 2 well test was very specific and detailed, as seven individual zones were tested. These natural hydrogen and helium zones were identified based on open hole logs and mud gas data from logs recorded during last year’s drilling campaign.
Well testing results
The seven zones tested in Ramsay 2 (250 metres to 1,000 metres) all confirmed natural hydrogen brought to the surface, validating purity levels from Ramsay 1 and 2, as well as the original 1931 Ramsay Oil Bore results.
This testing confirmed purity levels up to 95.8% hydrogen (air corrected) across seven zones, with the highest recorded at 531 metres depth.
Additionally, helium was extracted from a 180-metre thick pay zone in the Kulpara Dolomite section at depths from 612 metres to 777 metres in the Ramsay 2 well. This 180-metre zone has shown significant helium spikes during initial testing.
Previous air-corrected purity levels up to 17.5% helium were confirmed, with potential for higher purity levels to be confirmed in Stage 2 testing to help further understand the significant helium spikes during initial testing.
The company notes that it achieved its primary objective of confirming downhold pressure, with natural hydrogen and helium flowed to the surface before formation water encroachment impeded further flow testing. This is a crucial result ahead of Stage 2 testing program.
Stage 2 testing will determine flow rate
Based on promising Stage 1 results, the company will proceed to an extended exploration well testing program. This includes flow testing both Ramsay 1 (open hole) and Ramsay 2 (cased and perforated) to understand future well performance.
Stage 2 will involve installing a downhole pump to remove formation fluid while monitoring gas rates and composition at the surface.
Success in this phase will help determine potential flow rates and accumulation metrics, optimise future well designs, and contribute to the design of a proof-of-concept natural hydrogen and helium pilot plant.
Gold Hydrogen says that due to the pioneering nature of the project works to date, any further detection of free-flowing gas to surface will be highly encouraging for the future of the project, bearing in mind that future wells are likely to be drilled in more optimal locations.
“Amongst highest ever purities”
Gold Hydrogen managing director Neil McDonald said: “To specifically test seven zones in Ramsay 2 from 200 metres to 1,000 metres and to have confirmed natural hydrogen can be extracted to the surface from all seven zones, plus confirming that helium can be extracted to surface from a 180-metre gross thick pay zone, is a remarkable result.
“These results are believed to be amongst the highest ever recorded purities in the world for helium at 17.5% (air corrected) and for natural hydrogen at 95.8% (air corrected).
“We look forward to finalising our detailed plans and our contractual arrangements for Stage 2 exploration well testing to commence early third quarter 2024.
"We are well on the journey of aspiring 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.”