Gold Hydrogen Ltd (ASX:GHY) completed Stage 1 well testing at its Ramsay Project in South Australia, achieving exceptional purity levels of 17.5% helium and 95.8% natural hydrogen. This milestone marks a significant advancement in natural hydrogen and helium production.

Remarkable Results in Ramsay Project Well Testing

Gold Hydrogen Ltd (ASX:GHY) has successfully completed Stage 1 well testing at its Ramsay Project on the Yorke Peninsula in South Australia, reporting outstanding results. The Ramsay 1 and Ramsay 2 wells have demonstrated world-leading natural hydrogen and helium purity levels, with air-corrected figures reaching 17.5% for helium and 95.8% for natural hydrogen.

Pioneering Well-Testing Program

This well-testing initiative marks the first dedicated natural hydrogen and helium operation in Australia and is among the few globally. The Ramsay 1 well test employed an open hole approach to assess formation inflow, utilizing nitrogen injection to clear residual downhole fluids. The permeable formation allowed natural hydrogen to be recovered at the surface.

The Ramsay 2 well test was comprehensive, examining seven individual zones identified through open hole logs and mud gas data from the previous year’s drilling efforts.

Outstanding Well Testing Results

Testing of the seven zones in Ramsay 2 (ranging from 250 to 1,000 meters) confirmed the extraction of natural hydrogen at the surface, supporting the purity levels observed in both Ramsay 1 and 2, as well as historical 1931 Ramsay Oil Bore data. The highest hydrogen purity, recorded at 95.8% (air corrected), was found at a depth of 531 meters.

Additionally, helium was extracted from a 180-meter thick pay zone within the Kulpara Dolomite section (612 to 777 meters) in the Ramsay 2 well, showing significant helium spikes. The confirmed air-corrected purity levels reached up to 17.5%, with potential for higher purities to be verified in Stage 2 testing.

The testing confirmed downhole pressure and successful flow of natural hydrogen and helium to the surface, despite formation water encroachment halting further flow testing—an essential finding before advancing to Stage 2.

Plans for Stage 2 Testing

Encouraged by the promising Stage 1 outcomes, Gold Hydrogen Ltd will proceed with an extended exploration well testing program. This phase will involve flow testing both Ramsay 1 (open hole) and Ramsay 2 (cased and perforated) to assess future well performance. Stage 2 will also see the installation of a downhole pump to eliminate formation fluid while monitoring surface gas rates and composition.

Success in this stage will determine potential flow rates, optimize future well designs, and aid in developing a proof-of-concept natural hydrogen and helium pilot plant.

Gold Hydrogen is optimistic about detecting free-flowing gas to the surface, which would be highly encouraging for the project's future, considering that future wells will likely be drilled in more optimal locations.

Among the Highest Purities Ever Recorded

Gold Hydrogen's managing director, Neil McDonald, remarked, “To specifically test seven zones in Ramsay 2 from 200 meters to 1,000 meters and to have confirmed natural hydrogen can be extracted to the surface from all seven zones, plus confirming that helium can be extracted to surface from a 180-meter gross thick pay zone, is a remarkable result. These results are believed to be amongst the highest ever recorded purities in the world for helium at 17.5% (air corrected) and for natural hydrogen at 95.8% (air corrected).”

He added, “We look forward to finalizing our detailed plans and our contractual arrangements for Stage 2 exploration well testing to commence early third quarter 2024. We are well on the journey of aspiring to produce both natural hydrogen and helium at commercial levels as we ultimately progress. We have very large prospective resources for both gases, and that is only over a portion of the Ramsay Project permit.”

Highlights:

Completion of Stage 1 Well Testing: Interim Results for Ramsay 1 and Ramsay 2 Confirmed:

World-Leading Purity Levels:
- Natural Hydrogen: Purity levels up to 95.8% H2 (air corrected) across 7 zones with the highest recorded at 531m depth.
- Helium: Previous air-corrected purity levels up to 17.5% He, with potential for higher purity levels to be confirmed in Stage 2 testing to help further understand the significant helium spikes during initial testing as per the log image in Annexure 1.
Successful Downhole Pressure Confirmation:
- Natural hydrogen and helium flowed to the surface, achieving the primary objective before formation water encroachment impeded further flow testing. This is a crucial result ahead of Stage 2 testing program discussed below.
Hydrogen Extraction Across All Tested Zones:
- Seven zones tested in Ramsay 2 (250m to 1000m) confirmed natural hydrogen brought to the surface, validating purity levels from Ramsay 1 and 2, as well as the original 1931 Ramsay Oil Bore results.
Helium Extraction from 180m Thick Pay Zone:
- Helium was extracted from a 180m thick pay zone in the Kulpara Dolomite section at depths from 612m to 777m in the Ramsay 2 well. This 180m zone has shown significant helium spikes during initial testing as per the log image in Annexure 1.
Ongoing Composition Testing and Analysis:
- Extensive testing and sampling in conjunction with CSIRO, SGS, and Petro Lab. Samples have been sent for specialist composition and isotopic analysis to world- leading laboratories in Australia and overseas. Further updates on technical analysis will be provided as they become available.
Confirmed High Permeability:
- Unexpectedly high permeabilities were demonstrated in the Kulpara dolomites and within fractures of the Kulpara and Parara limestones, indicating the formations are permeable and producing fluids and associated gas after a period of shut-in. This is a significant de-risking milestone for the Company.
Next Stage of Testing:
- Based on promising Stage 1 results, the Company will proceed to an extendedexploration well testing program. This includes flow testing both Ramsay 1 (open hole) and Ramsay 2 (cased and perforated) to understand future well performance. Stage 2 will involve installing a downhole pump to remove formation fluid (water) while monitoring gas rates and composition at the surface. Success in this phase will help determine potential flow rates and accumulation metrics, optimize future well designs, and contribute to the design of a proof-of-concept Natural Hydrogen and Helium pilot plant. It should be noted that due to the pioneering nature of the project works to date, any further detection of free-flowing gas to surface will be highly encouraging for the future of the Ramsay Project, bearing in mind that future wells are likely to be drilled in more optimal locations.

Gold Hydrogen Well Testing Achieves World’s Highest Purities of Helium and Natural Hydrogen