Highlights:
- Exploration well testing operations, which are pioneering for both Natural Hydrogen and
Helium in a non-petroleum system, are set to commence today at the site of the Company’s
successful Ramsay 1 and Ramsay 2 exploration wells.
- This is very much a new energy and resource play that Gold Hydrogen has confirmed with
historical data, and with its recent exploration and drilling results.
- The Company’s Ramsay 1 and Ramsay 2 wells drilled late last year found Natural Hydrogen
at up to 86% purity, and Helium at up to 6.8% of raw gas, as previously reported.
- The independent best estimate Prospective Resource for Natural Hydrogen on the
Company’s 100% owned PEL 687 is 1.3 billion kilograms, and for Helium the mean estimated
Prospective Resource is 96 billion cubic feet (Bcf) over approximately 25% of the tenement.
Refer Tables 1 and 2 for full details.
- The Company has significant prospective resources with large-scale potential.
- This is the start of a very exciting technical journey, and is not dissimilar to the eventual
success of existing world-renowned oil and gas energy projects, which took time to reach
their full potential.
- The objectives of the exploration well tests are to obtain more samples of both Natural
Hydrogen and Helium for further specialist analysis in world-leading laboratories, and to
extract both Natural Hydrogen and Helium to surface.
- Testing operations are expected to take most of March, with preliminary technical results
from the overall testing of both the Ramsay 1 and Ramsay 2 exploration wells program
expected by April, with further detailed laboratory analysis ongoing.
- Results from the testing program will provide the Company with valuable information for
future drilling and well completion designs, for the future pilot program, and longer-term
commercialisation planning.
- Planning continues on the Company’s broader 2024 work program, including a regional 2D
seismic program and the drilling of additional wells.
The Directors of Gold Hydrogen Limited are pleased to provide
an operational update on the Company’s groundbreaking Ramsay Project on the Yorke Peninsula,
prospective for both Natural Hydrogen and Helium.
Further Detail:
1. Overview of exploration testing operations on Ramsay 1 and Ramsay 2 wells:
Exploration well testing operations on the Ramsay 1 and Ramsay 2 wells are set to commence today. Well
testing experts, SGS Australia have supplied the flow back testing package which includes all pressure and
flow sensors and gas sampling equipment. Experienced gas contractors Well Pro and MPK have supplied
the coil tubing unit, plus the nitrogen pumping and wireline operations for the work. Well testing
operations are expected to take 2 to 3 weeks with extensive gas sampling to be conducted by SGS together
with Petro Lab and CSIRO. Gas samples will be sent to various local and international laboratories to have
full gas composition and noble gas isotope tests conducted. It is expected that these technical tests could
take several months to fully complete. Well testing experts ERCE have been engaged to provide an
independent review of the testing program, utilising experts in Perth and London.
2. Groundbreaking exploration testing for both Natural Hydrogen and Helium
This well testing program is the first dedicated Natural Hydrogen and Helium well test operation conducted
in Australia, and to the Company’s knowledge, it is likely one of only a few in the world.
The Company considers this to be the start of an exciting journey, which is not dissimilar to that undertaken
by world-renowned and ultimately successful oil and gas projects, like the early days in the CSG and shale
industries. For those particular resources, the exploration and completion techniques were developed
and optimised over time, improving project economics and ultimately leading to major projects being
developed. We anticipate a similar path forward for our Natural Hydrogen and Helium resources, although
the timeframe may be quicker as drilling and completions technologies developed for other gas resources
may be applicable to our Natural Hydrogen and Helium resources.
3. First key step on the journey to future commercialisation
The Company is of the view that the Ramsay Project contains significant prospective resources of both
Natural Hydrogen and Helium, with large scale potential that it is aiming to commercialise over time.
There is very little data available for dedicated Hydrogen wells anywhere in the world due to the lack of
analogue wells. Accordingly, there is inherent uncertainty with regard to the expected outcomes of the
Ramsay 1 and Ramsay 2 exploration well testing program.
To the Company’s knowledge, the only Natural Hydrogen field currently in production is located in Mali,
West Africa, where Natural Hydrogen production is used to power the small town of Bourakebougou. It
has been reported that the Natural Hydrogen wells in Mali do not have any decline in production and are
continually regenerating and producing at the same rate.1
Helium is extremely valuable and indicatively, longer-term bulk pricing is expected to approximate USD450
per Mcf (thousand cubic feet).2
Natural Hydrogen has a high energy content, and extracting it even in small quantities may prove
commercial for localised applications. Furthermore, given that Helium was also found within both the
Ramsay 1 and Ramsay 2 wells, being able to extract and process both gases in small quantities may provide
potential short-term commercial and / or proof of concept opportunities to help progress the Ramsay
Project.
4. Objectives of exploration flow testing
The primary objective of the Ramsay 1 and Ramsay 2 well testing program is to obtain gas samples for
compositional and technical analysis, which will be undertaken in third-party laboratories.
Secondary objectives of the well testing program are to extract both Natural Hydrogen and Helium to
surface, and to obtain formation fluid samples for analysis.
From the well testing data obtained, Gold Hydrogen will better understand the characteristics of the
Natural Hydrogen and Helium reservoirs, including an understanding of potential wellbore skin damage
from drilling. The data obtained will assist the Company in gaining technical insights into how the Ramsay
Project area could be further explored and appraised, including future well designs and testing designs, as
well as providing input for the future pilot plant design.
Although the final results of the well testing program may take several months to be received and
analysed, initial results around gas composition from the combined testing of the Ramsay 1 and Ramsay 2
exploration wells are expected to be available by April.
Gold Hydrogen Managing Director, Neil McDonald said: “We have found both Natural Hydrogen and
Helium in our Ramsay 1 and 2 wells at world class purities, and our prospective resource estimates indicate
the potential for very large quantities. We know the gases are there, and the start of exploration well
testing operations is a good first step to the potential future commercialisation of both Natural Hydrogen
and Helium in this region. We look forward to obtaining more samples and extracting the gases to surface,
which will be very valuable data and information for the future appraisal and further development of the
project”.
Ongoing Activities
To progress the Ramsay project area and to further explore PEL 687, a large scale regional 2D seismic
project is being designed and costed. The objectives for the seismic program will be to help delineate the
size of the potential Hydrogen and Helium accumulation(s) and support the identification of future drilling
targets on the Yorke Peninsula.
Planning is also underway for further drilling activity later in 2024.
Important Risk Commentary
It is important to note that there remain both geological and potential development risks associated with
the Ramsay Project and the Company’s commercial and business objectives. These risks relate to the
presence, recovery and potential volumes of both Hydrogen and Helium, but also due to the location of
the resource within agricultural areas and the proximity to National Parks on both Yorke Peninsula and
Kangaroo Island, requiring significant landholder and community engagement. The worldwide, Federal
and South Australian Government and industry efforts to secure Hydrogen as an alternative energy source
provides confidence that any technical and social concerns may be overcome.