With hydrogen as the wonder element, the demand for hydrogen that reached an estimated 87 million tonnes per annum (Mtpa) in 2020 is expected to grow as much as 580 Mtpa by 2050.
Exploring for hydrogen and helium, Fortescue acquires 39.8% strategic interest and invests A$21.9M, subject to HyTerra shareholder approval. HyTerra Ltd (ASX: HYT) is the only ASX Listed Company with exposure to both hydrogen and helium in the United States.
With USA incentivising investment into hydrogen, HyTerra Limited’s Nemaha Project, Kansas USA, having potential to triple exploration well count and leasing offers a world of opportunity.
On 20 May 2024, HyTerra Limited (ASX: HYT) announced the acquisition of additional exploration leases for its Nemaha Project in Kansas. This expansion increases the company's net exploration lease acreage from 9,607 to 12,720 acres. The new leases, situated in Wabaunsee County, are geologically contiguous with the Sue Duroche 2 well (2009), which has documented occurrences of up to 92% hydrogen and 3% helium. These leases are supported by an airborne geophysical survey conducted by HyTerra in 2023, as well as existing seismic data.
Additionally, the company reported the results of its fully underwritten pro-rata non-renounceable rights issue on 6 May 2024, which resulted in valid applications for 108,063,723 New Shares, raising a total of $1.94 million (before costs) under the Offer.
Prior to the capital raising, HyTerra maintained a cash position of $389 thousand as of 31 March 2024.
Following the recent completion of fundraising activities, the company plans to advance on key growth catalysts in 2024. HyTerra continues to execute its strategy of expanding leasing areas, with over 3,000 net acres recently leased, increasing the Nemaha Project lease holdings by more than 30%. Further leasing of high-priority acreage is planned, alongside the drilling of two exploration wells in Q3 2024, with an estimated cost of approximately $2 million.
These significant exploration activities aim to advance resource evaluations and support the company’s long-term commercialization strategy for natural hydrogen and helium resources. HyTerra also continues to explore New Growth Opportunities.
HyTerra maintains promising commercialization plans for white hydrogen, which offers significant disruptive potential due to its highly favorable characteristics for both consumers and producers, including the lowest production costs and carbon emissions among other energy sources. The company is soon expected to make a venture decision for its Geneva Project, in which it holds a 16% working interest, promising substantial commercial advancements. HyTerra's strong focus on exploration activities and expanding the land and lease package for its early-stage Nemaha Project is poised to define the future commercial potential of the project and the company, with historical well data being highly compelling. Successful exploration activities may also bolster investor confidence and market sentiment. Additionally, the project's robust network of offtakers in close proximity supports a favorable sales platform, providing early indications of operational and financial viability.
Source: Company’s Report
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