HyTerra Ltd (ASX:HYT) has enhanced its US hydrogen portfolio by securing 100% owned and operated leases on the Nemaha Ridge of Kansas in a region supported by natural hydrogen occurrences.
These operated leases totalling more than 7,500 acres are in addition to the company’s non-operated interest with Natural Hydrogen Energy LLC at Project Geneva in Nebraska, which is to the north of Kansas.
Operated leases
HyTerra’s wholly-owned subsidiary HYT Operating LLC has secured a 100% working interest in the operated leases on the Nemaha Ridge in Riley, Geary and Morris counties in the state’s northeast.
These leases grant HyTerra exclusive exploration and exploitation rights for minerals, oil, gases and notably hydrogen and helium, without any mandatory work commitments, and form part of the company’s strategy to further expand its lease holdings throughout 2023.
Hydrogen occurrences
The Nemaha Ridge leases contain several well sites with published hydrogen occurrences, based on gas analysis recovered from the wellbores.
This area has a history of at least 10 natural hydrogen occurrences (up to 92% H2) within proximity to industries, infrastructure and end-users.
Two of the most significant occurrences on HyTerra’s leases are Scott (up to 56% H2) drilled to 677 metres in 1982 and Sue Duroche-2 (up to 92% H2) drilled to 424 metres in 2008.
HyTerra holds 7,586 acres across Riley, Geary & Morris counties, in north-eastern Kansas. Map includes gravity anomaly data and the distribution of recorded hydrogen occurrences in the US with a larger circle representing higher H2%.
About Nemaha Ridge
Nemaha Ridge is a geographically extensive structural feature defined by seismic and well data extending across much of eastern Kansas and Nebraska.
Hydrogen originates from iron-rich rocks within the Mid-Continent Rift on the western flank of the Nemaha Ridge.
Potential reservoirs in the Nemaha Ridge area include Precambrian basement rocks of around 1.2 billion years, as well as overlying sediments ranging from 500 to 300 million years old.
Faulting on the flanks of the rift provides pathways for hydrogen charge to migrate from the Mid-Continent Rift up to the Nemaha Ridge, where multiple hydrogen occurrences are located.
Data-driven approach
To understand the key elements of the natural hydrogen prospectivity on Nemaha Ridge, HyTerra has taken a data-driven approach to develop a geological model for natural hydrogen exploration.
This model is calibrated by extensive well log, geochemical and geophysical data and underpins the company’s leasing strategy.
The prospective area contains a unique combination of ancient and currently active geological processes that contribute to the natural hydrogen system.
Work program
In a bid to exploit this area, the company has developed a focused exploration program to begin immediately with the primary aim of maturing a portfolio of prospects to permitted well sites in 2023.
The focused exploration program to rapidly mature a portfolio of prospects includes:
- Geophysical survey;
- Independent resource assessment; and
- Well design and permitting.
Meantime, further north at Project Geneva, the company is working with its joint development partner and operator, Natural Hydrogen Energy LLC on progressing the ongoing well testing and future activities.
Placement plans
To help execute its US hydrogen strategy, HyTerra intends to undertake a placement to raise up to A$2.5 million.
These funds will be applied equally to Nemaha Ridge and Project Geneva, ensuring both have sufficient financial backing for their advancement over the next 12 months.
If the company does not have sufficient placement capacity under Listing Rules 7.1 and 7.1A to complete a placement, it will be noted in the final terms of the offer that the issue of part or all of the placement shares will be subject to shareholder approval.