锟� McCoy-1 production test to evaluate hydrogen and helium flow characteristics
and concentrations.
锟� Detailed test design finalised, with equipment procurement underway ahead of
planned Q2 2026 commencement.
锟� The well test will appraise the basement section of McCoy-1 to support exploration
drilling decisions within the remaining leases.
锟� Experiments are underway at the University of Colorado-Boulder labs to measure
hydrogen generative potential (engineered hydrogen) of McCoy-1 rock samples.
HyTerra Limited (HyTerra or the Company) is pleased to provide an update on the
next phase of production testing within the Project Nemaha acreage.
In December 2025, HyTerra released a Strategic Plan1 outlining the Company锟絪 plan to consolidate
its position as a leading global geologic hydrogen company, structured around three value-driving
pillars. Pillar 1 focuses on commercialising the Kansas project through disciplined drilling,
production testing and targeted technology applications aimed at demonstrating repeatable and
scalable hydrogen and helium production.
Nemaha Exploration Program
HyTerra锟絪 first three wells were focused on drilling into the Nemaha Ridge to test the presence of
hydrogen and helium. Historical well data indicated hydrogen migration from deeper Mid-Continent
Rift structures to the crest of the Nemaha Ridge.
The subsequent 2025 exploration well results had elevated hydrogen and helium gas shows and
confirmed flow potential warranting production testing prior to drilling of Mid-Continental Rift leases
following the 2025-2026 winter period (Figure 1)
2
.
McCoy-1 Well
Based on the results from Sue Duroche-3
3
, the first well drilled in the exploration program, the
Company decided to drill a third well, McCoy-1 (Figure 2).
McCoy-1 was drilled approximately 9 km east of Sue Duroche-3 on the same geological structure on the crest of the Nemaha Ridge (Figure 3).
McCoy-1 marked a transition from validating historical wells to selecting locations based on
proprietary geological interpretation and internally developed targeting methodology.
The McCoy-1 drill site location was identified by interpretation of the Company锟絪 Xcalibur Airborne
Gravity Gradiometry and Magnetic survey acquired in 2023, and legacy seismic data purchased
and reprocessed in 2025.
McCoy-1 drilled to a total depth of 5,562ft MDKB (1,695m) on time, on budget, with no HSE
incidents. It is HyTerra锟絪 deepest well to date, drilling through approximately 1,430ft (435m) of
sedimentary rocks and 4,132ft (1260m) of Precambrian basement.
The Sue Duroche-3 well already confirmed the flow potential of the Precambrian basement. To
appraise the dynamic hydrogen and helium flow potential of the formation, HyTerra installed a realtime gas monitoring system while swabbing McCoy-1. Elevated hydrogen and helium flowing gas
shows were measured during swabbing.
HyTerra also obtained wellhead gas samples from Sue Duroche-3, Blythe 13-20 and McCoy-1
during cleanup and flow back operations. They were analysed by an independent laboratory4
.
Subsequently, rock samples from McCoy-1 have been sent to HyTerra锟絪 advisor Professor Alexis
Templeton at the University of Colorado-Boulder to measure their hydrogen generative potential
through dynamic laboratory water-rock reaction experiments. These are the first of a series of rocks
which will be tested, with the remainder identified and located by HyTerra锟絪 锟組ust Haves锟� rulebook
for hydrogen source rocks in multiple states in the USA. This work will continue to inform HyTerra锟絪
view of the most prospective areas are for geological hydrogen generation and future leasing
strategy.
McCoy-1 Production Test
The commercialisation pathway for geologic hydrogen progresses through clearly defined phases.
In line with those phases, HyTerra锟絪 wells were drilled and then cleaned up and monitored to collect
key technical and reservoir data. Based on the monitoring data, HyTerra has elected to conduct a
production test at McCoy-1 to progress the project through the appraisal phase toward the next
decision gate.
The diagram below outlines each phase of the process and indicates the current position of the
Company锟絪 wells.
The production test aims to obtain representative flowing gas compositions from the basement formation. Analysis is now complete on key intervals of interest for potential zonal isolation, site
works and procurement of appropriate pumps and other equipment. HyTerra anticipates being
ready to carry out the production test after the winter season in Q2 2026.
Production testing is intended to achieve the following objectives:
锟� Determine representative formation gas composition
锟� Assess sustainable hydrogen and helium flow rates
锟� Validate reservoir pressure behaviour and connectivity
锟� Acquire dynamic fluid and reservoir performance data
锟� Confirm well and completion integrity
锟� Inform a clear go / modify / exit decision
Gas Markets
Hydrogen: Kansas represents a compelling initial market for geologic hydrogen. The State has
established hydrogen demand through ammonia production and other industrial processes located
throughout the region. Kansas is also a major transportation crossroads in the Midwestern United
States, with key east-west and north-south interstate highways converging within the State. If
hydrogen emerges as a heavy-vehicle transportation fuel, Kansas is strategically positioned to serve
as a central rollout point for national distribution.
Helium: Kansas is a strategic hub for helium production in the USA. The supportive regulatory
environment and established industry infrastructure have resulted in production and transport of
helium from Kansas reservoirs for decades. Helium has historically been produced in Kansas as a
by-product of conventional natural gas projects. One of the largest natural gas fields in the USA is
the Hugoton gas field discovered in Kansas in 1922 that spans across three States namely Kansas,
Oklahoma and Texas. Generally, natural gas containing more than 0.3% helium is considered
economic for helium extraction in the United States, although the economics of helium extraction
often depend on products in a natural gas stream and flow rates.
This announcement has been authorised for release by the Board of Directors.