HyTerra Ltd (ASX:HYT) and its joint venture partner Natural Hydrogen Energy LLC have developed a work program for the flow testing of the Hoarty NE3 natural hydrogen exploration well at the Geneva Project in Nebraska, USA.
The flow test program is designed as an extended test to record gas flow data over several months, allowing the company to determine the hydrogen production potential of wells and analyze key parameters such as gas composition, pressure and flow rate. can be measured.
This operation includes installing an electric submersible pump (ESP). This is a commonly deployed downhole pump used to dehydrate the well so that hydrogen gas flows freely from her two expected zones.
Independent laboratory analysis of the data generated will focus on hydrogen concentrations and other commercial non-hydrocarbon gases such as helium that may coexist in the stream.
Steps to Resource Estimation
HyTerra Executive Director Avon McIntyre said:
“The data collected will be important for establishing project contingent resource estimates and will also advance our understanding of the natural hydrogen system for future exploration.”
The joint venture is working with service providers and is currently working on final selection tenders and mobilization schedules for next year, with rig contracts expected to be awarded in early January.
Hytera and natural hydrogen
HyTerra is an Australian based company dedicated to the exploration and production of natural hydrogen.
HYT requested a voluntary suspension from the ASX in October, citing inconsistencies in its financial and corporate strategy with Chapters 1 and 2 of the ASX Listing Rules.
The company relisted on December 2, 2022, received a conditional exemption from many ASX listing requirements, and refocused its business on natural hydrogen as a core asset.
Natural hydrogen is produced by processes that occur naturally in the earth’s underground.
Hundreds of historic gas wells have mined hydrogen in the past, but until recently companies didn’t have the incentive to commercialize the resource.
Renewables and the decarbonization revolution have rapidly changed the commercial viability of hydrogen, positioning it as one of the few green fuels with the potential to replace hydrocarbons.
Grand View Research estimates that the global hydrogen generation market will be valued at USD 128.85 billion in 2021, with a compound annual growth rate (CAGR) of 6.4% to 2030.
HyTerra is interested in a joint development agreement (entitled to up to 51% interest) with Natural Hydrogen Energy LLC to advance the Geneva project.
Joint venture assets include the world’s first wildcat well (Hoarty NE3) specifically targeting natural hydrogen and an exploration lease on 3,891 acres across Nebraska and South Carolina.
The company now has an attractive enterprise valuation of approximately $5 million and targets a rapidly growing market. The market is steadily gaining geopolitical and economic support as efforts to decarbonize accelerate.
HyTerra is targeting production in 2024, a timeline that positions the company as a global leader in the natural hydrogen and broader renewable hydrogen sectors.