Funding Secured for Hydrogen & Helium Drilling Program.
HyTerra Ltd, an Australian start-up, has embarked on an ambitious project to explore for natural hydrogen and helium within the United States, announcing a significant capital raise of approximately A$6.1 million ($4 million USD) to fund its drilling program. Set to commence in the third quarter of 2024, this multi-well exploration campaign will target the Nemaha Ridge in Kansas, an area already identified as a natural hydrogen play fairway.
The company’s exploration acreage, spanning over 9,600 acres, harbors more than ten hotspots for hydrogen and helium, indicating a high probability of uncovering significant quantities of these valuable gases. HyTerra’s objective is to recover natural hydrogen at a cost below $2/kg and a carbon intensity below 0.4kg of CO2-equivalent per kilo of H2, aiming for eligibility for the up-to-$3/kg clean hydrogen production tax credit.
Funds from the capital raise will be allocated towards leasing high-priority areas, drilling two wells, and conducting evaluations of geophysical data and resources. The initiative marks a critical step towards HyTerra’s goal of achieving carbon neutrality and advancing the utilization of white hydrogen, potentially transforming the Mid-West USA into a major hub for renewable energy.
HyTerra Executive Director, Mr Avon McIntyre, said the Company will immediately invest the capital raised to accelerate its exploration program in 2024. “This capital raising is a watershed moment for not only HyTerra, but the whole White Hydrogen sector. White Hydrogen made by nature could be a gamechanger. We have multiple hydrogen and helium drill targets in our lease portfolio and are eager to get them drilled. This placement and fully underwritten rights issue gives us certainty to proceed with the drilling program and secure the services of key contractors we have been engaging with over recent months.” “Investors and shareholders are encouraged to read the Company’s recently released corporate presentation that contains further details of our Nemaha Ridge Project and the potential of White Hydrogen in the Mid-West USA”.
The capital raise includes a placement to sophisticated and professional investors, followed by a fully underwritten non-renounceable rights issue. The company has received firm commitments to raise up to $878,400 before costs through the issue of approximately 48.8 million fully paid ordinary shares, with additional funding expected from the rights issue to eligible shareholders.
As HyTerra prepares for this groundbreaking exploration, the firm has suspended trading of its shares on the Australian Stock Exchange ahead of the funding round.
In addition to hydrogen, HyTerra’s exploration efforts have revealed a significant potential helium reserve beneath its land. With a 90% probability, it’s estimated that there are 37 million standard cubic feet (approximately one million cubic meters) of helium, a resource becoming increasingly valuable in the market. The current pricing for liquefied helium is about $450 per thousand cubic feet, making it 50 times more expensive than liquefied natural gas, highlighting the economic potential of HyTerra’s helium discovery alongside its hydrogen production endeavors.
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