Gold Hydrogen has discovered high-purity, naturally-occurring hydrogen in the second well of its maiden drilling campaign in South Australia, with the company now convinced it has a “commercial play’’ on its hands.
Results from the company’s Ramsay-2 well include hydrogen at purity levels of up to 86 per cent, along with 6.85 per cent helium.
The Ramsay-1 well, drilled in November about 500m from Ramsay-2, showed hydrogen at up to 73 per cent purity.
Gold Hydrogen told the ASX on Tuesday “the dual finds have Gold Hydrogen convinced it has a commercial hydrogen and helium play in its large tenement near Minlaton on the Yorke Peninsula’’.
Managing director Neil McDonald said the indications were that the company had found a “laterally extensive hydrogen reservoir and a significant helium system at the Ramsay project site’’.
“The two successfully drilled and tested wells have certainly started to counter scepticism that naturally-occurring hydrogen resources could be developed in Australia and has started a big influx of international interest in our project,” Mr McDonald said.
“The results we’ve achieved and the funding in the bank put us in an enviable position.
“With hydrogen increasingly being seen as a low-emissions alternative for energy generation, these results place Gold Hydrogen, whose hydrogen can be produced much cheaper than man-made green hydrogen, in a strong position.’’
Gold Hydrogen recently raised $14.8m at 75c per share. The stock listed at 50c per share in January and was trading up 9 per cent at $1.04 on Tuesday.
Gold Hydrogen decided to drill for hydrogen in SA in a bid to replicate drilling results from 90-100 years ago, which reported hydrogen shows in drilling in the Cooper Basin, on Kangaroo Island and on the Yorke Peninsula.
Gold Hydrogen said the recent capital raising would enable the company to press ahead with another two wells next year, and to begin flow testing to confirm the concentration and pressure in the field.
High-purity hydrogen was found at shallow levels from 194m through to 536m, the company said.
The high levels of helium in both wells to date potentially add further commerciality to the project, with helium in short supply globally and unable to be manufactured.
Extracted in full from: https://www.theaustralian.com.au/business/renewable-energy-economy/globally-significant-hydrogen-results-in-drilling-campaign-on-the-yorke-peninsula/news-story/8dd964963dd85a591788020124718039