HyTerra Confirms Hydrogen and Helium Discoveries in McCoy 1 Nemaha Well

HyTerra's exploration program has achieved another significant milestone with impressive gas discoveries at its McCoy 1 well in Kansas. Recent testing has revealed remarkable concentrations of both hydrogen and helium, positioning the company strategically within America's industrial gas landscape.

The McCoy 1 well represents a critical advancement in HyTerra's natural hydrogen and helium exploration efforts, with findings that could have substantial implications for clean energy resources and critical industrial gas supplies.

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Remarkable gas concentrations confirmed at McCoy 1

Recent mud gas samples from the Nemaha exploration well have revealed hydrogen concentrations reaching up to 83% and helium concentrations measuring up to 5%. These figures closely mirror results from the company's previous Sue Duroche 3 well, which demonstrated 96% hydrogen and 5% helium concentrations.

The consistency of these high-quality gas readings across multiple wells suggests a potentially significant resource with broad commercial implications. The McCoy 1 represents HyTerra's deepest test to date, providing valuable new geological insights.

"The consistent recording of elevated hydrogen and helium concentrations across multiple wells indicates we may be looking at a substantial resource with genuine commercial potential," noted a company spokesperson in recent communications.

Strategic location enhances project viability

The McCoy 1 well enjoys several strategic advantages:

• Situated on 3,116 contiguous net acres owned by HyTerra
  
• Property directly adjacent to I70 Interstate Highway
  
• Access to a major east-west transportation corridor spanning 10 U.S. states
  
• Located in Kansas, which leads the United States in helium production
  

This positioning provides logistical advantages for future development, particularly for gas processing and distribution. The proximity to major transportation infrastructure reduces barriers to commercial development that often challenge remote projects.

Technical achievements push exploration boundaries

The McCoy 1 well represents several technical milestones:

• Deepest well in the company's exploration program to date
  
• Successfully penetrated approximately 435 meters of sedimentary rocks
  
• Extended through 1,260 meters of Pre-Cambrian basement
  
• Converted from exploration to appraisal status
  
• Complete removal of drilling fluid from the well bore
  

These achievements demonstrate HyTerra's growing technical capabilities and expanding geological understanding. The ability to effectively drill and prepare wells of this depth represents an operational capability for future exploration activities.

Knowledge application driving operational improvements

A key factor in McCoy 1's success has been the company's ability to incorporate learnings from its two previous wells. This knowledge transfer has yielded several operational benefits:

• Modified well design providing cost efficiencies
  
• Improved operational procedures reducing drilling time
  
• Enhanced data collection capabilities yielding richer geological insights
  
• Established foundation for effective future exploration planning
  

The progressive improvement across successive wells demonstrates HyTerra's commitment to operational excellence and suggests potential for further efficiency gains as the mining industry evolution continues to mature.

Industrial significance of dual gas discovery

The discovery of both hydrogen and helium in commercial concentrations carries particular significance:

• Hydrogen as a clean energy resource in decarbonization efforts
  
• Helium as a critical industrial gas facing recurring supply constraints
  
• Kansas's established position as America's leading helium producer
  
• Consistent gas compositions across multiple wells suggesting resource continuity
  
• Strategic importance for industrial applications and energy transition initiatives
  

The co-location of hydrogen and helium is noteworthy, as this combination is relatively rare and potentially increases economic viability through dual revenue streams. While hydrogen's role in renewable energy mining expands, helium remains irreplaceable in applications including medical imaging, electronics, and research.

Major investment backing provides validation

The exploration program has received significant investment backing:

• Fortescue's (ASX: FMG) $21.9 million investment supporting the project
  
• Andrew "Twiggy" Forrest's backing providing substantial industry credibility
  
• Early exploration results vindicating investor confidence
  
• Demonstrates major player confidence in the resource potential
  

This level of investment suggests confidence in HyTerra's geological model and commercial potential. Fortescue's involvement brings substantial mining and resource expertise to the project.

Flow testing program to determine production potential

With the drilling and preparation of McCoy 1 complete, HyTerra is now preparing for a critical flow testing program:

• Testing will determine if the well is naturally fractured
  
• Assessment of natural gas inflow capability
  
• Comparative analysis with previous wells (Blythe 13-20 and Sue Duroche 3)
  
• Data collection to inform production test program design
  
• Full appraisal of steady-state gas flow rates and compositions
  

Flow testing will provide the first concrete indications of production capabilities. Success would de-risk the project and provide data for commercial development planning.

Future development pathways taking shape

Results from McCoy 1 will inform several development considerations:

• Guiding further exploration activities across HyTerra's acreage
  
• Enhancing geological understanding through data integration
  
• Potential for commercial development if flow testing proves successful
  
• Opportunity to establish production parameters for scaling
  
• Strategic positioning within the U.S. industrial gas market
  

The insights gained will be instrumental in shaping the project's trajectory, potentially accelerating the path to commercial development.

HyTerra's Discovery in the Broader Natural Gas Context

Comparison with other gas exploration projects

HyTerra's exploration campaign shares similarities with:

• Noble Helium's North Rukwa Project exploration approach
  
• Blue Energy's gas production methodology
  
• Distinct from conventional natural gas exploration
  
• Represents specialized industrial gas targeting
  
• Potential contributor to diversified U.S. gas supply
  

While sharing methods with specialized gas exploration programs, HyTerra's focus on natural hydrogen alongside helium represents a relatively unique approach.

Market implications for industrial gases

The McCoy 1 findings could have market implications:

• Meeting growing demand for hydrogen in clean energy applications
  
• Helping alleviate helium shortages
  
• Adding strategic value through domestic gas production
  
• Potentially reducing import dependencies
  
• Contributing to broader energy security objectives
  

These discoveries are significant given hydrogen's growing role as a clean energy carrier and persistent helium supply challenges. Domestic production of both gases could provide economic and strategic advantages, especially considering current natural gas price trends.

Understanding Natural Hydrogen and Helium Resources

What makes hydrogen and helium valuable resources?

• Hydrogen serves as a clean energy carrier in transport, industry, and power generation
  
• Helium as an irreplaceable gas in medical imaging, electronics, and research
  
• Both face supply challenges
  
• Natural sources provide economic advantages over manufactured alternatives
  
• Combined production potential enhances economics
  

While hydrogen's value lies in zero-emission potential, helium's irreplaceability drives premium pricing.

Natural hydrogen vs. manufactured hydrogen

Key differences:

• Natural hydrogen forms geologically, extracted directly from reservoirs
  
• No energy-intensive production processes
  
• Potential cost advantages (60-80% lower production costs)
  
• Environmental benefits from avoiding emissions of conventional production
  
• Extraction techniques resemble natural gas production
  

This distinction could disrupt hydrogen economics, as natural hydrogen may be produced at a fraction of conventional costs.

Commercial viability factors for gas discoveries

Key factors include:

• Sustained flow rates during extended testing
  
• Consistency of gas concentrations
  
• Reservoir characteristics
  
• Extraction costs vs. alternatives
  
• Proximity to infrastructure and markets
  
• Regulatory environment
  

Flow testing at McCoy 1 will provide critical data on these parameters.

Significance of co-located hydrogen and helium

• Geological conditions favorable for both gases
  
• Enhances project economics via dual revenue streams
  
• Rare combination in exploration
  
• Increases strategic value
  
• Diversified market applications
  

This co-location allows for shared infrastructure and processing, improving economics compared to single-product operations.

McCoy 1 Well Technical Profile

Parameter	Measurement	Significance
Hydrogen concentration	Up to 83%	High-quality resource potential
Helium concentration	Up to 5%	Commercially significant
Well depth	Deepest in program	Provides new geological insights
Sedimentary rock layer	~435 meters	Important for understanding gas trapping
Pre-Cambrian basement	1,260 meters	Critical for hydrogen generation theories
Land position	3,116 contiguous net acres	Substantial exploration footprint

The consistent recording of elevated hydrogen and helium concentrations across multiple wells suggests a potentially significant resource with commercial implications.

Natural Hydrogen: A Potential Game-Changer

Natural hydrogen represents a potentially transformative development in the hydrogen economy. Unlike manufactured hydrogen, which requires substantial energy inputs and often produces significant carbon emissions, natural hydrogen forms geologically and can be extracted directly from underground reservoirs.

This distinction carries implications for hydrogen economics. Conventional production methods like steam methane reforming (CO2-intensive) or electrolysis (electricity-intensive) result in high costs. Natural hydrogen could be produced at a fraction of these costs.

The Kansas geological setting appears favorable. Water and iron-rich minerals in Pre-Cambrian basement rocks create conditions for hydrogen generation, while overlying sedimentary layers provide trapping mechanisms. These findings align with broader decarbonisation mining benefits.

Investment Considerations and Risk Factors

While results appear promising, investors should consider:

• Early-stage nature of the exploration program
  
• Flow testing results crucial to commercial potential
  
• Market development for natural hydrogen still early
  
• Evolving regulatory frameworks
  
• Competition from established hydrogen production methods
  

Despite these, the project benefits from Fortescue's backing, consistent findings across multiple wells, and positioning in an established helium region. For those looking at investment opportunities 2025, this project bears monitoring.

Looking Forward: Next Steps for HyTerra

The immediate focus centers on the flow testing program at McCoy 1. Successful results would accelerate exploration across broader acreage and inform initial commercial planning.

HyTerra's growing geological understanding from three wells provides a foundation for targeted exploration. This progressive knowledge development represents a competitive advantage as the company refines its exploration model.

With both hydrogen and helium representing critical industrial gases with strong demand, successful development of McCoy 1 could position HyTerra advantageously within the U.S. industrial gas landscape.