Confirmation of up to 17.5% Purity for Helium - Ranks Amongst the
Highest Purity Levels Globally
Highlights:
- Interim Test Update – Successful exploration well testing operations, which are pioneering
for both Natural Hydrogen and Helium in a non-petroleum system, are nearing completion at
the site of the Company’s successful Ramsay 1 and Ramsay 2 exploration wells. Operations
have now been suspended to provide the crews with a mandatory work break, and will
resume after Easter.
- Testing Objectives – to obtain samples of both Natural Hydrogen and Helium for specialist
composition and isotopic analysis in world-leading laboratories and to extract both Natural
Hydrogen and Helium to surface. Both have been achieved.
- World Leading Helium Purity Levels - Testing and analysis to date following the drilling of
both Ramsay 1 and Ramsay 2 confirms up to 17.5% purity for Helium in the MDT sample
taken from the Ramsay 2 well, on an air-corrected basis. This provides clarification of the
results disclosed by the Company in its 6 and 19 December 2023 ASX releases. These results
are believed to be amongst the highest ever recorded purities for Helium in the world.
- Permeable Formation – Results demonstrate that the formation is permeable and producing
fluids and gas from all of the formations tested to date, and has produced both Natural
Hydrogen Helium to the surface. Permeability and ability to flow gas to surface was one of
the key objectives of testing, and a significant derisking milestone for the Company.
- Next stage of Testing – based on these promising results it is now appropriate to conduct a
longer term extended exploration production test to understand how future wells will
perform during the production phase of the project. Stage 2 testing will concentrate on
producing the well (via a down hole pump or other process to remove the formation fluid)
while monitoring gas rates at surface. This information will then feed into the design of a
future proof-of-concept Natural Hydrogen and Helium pilot plant.
Gold Hydrogen Managing Director, Neil McDonald said: “To have found and confirmed both Natural
Hydrogen at up to 86% purity and Helium up to 17.5% air-corrected purity in our Ramsay 1 and 2 wells is
truly amazing. And to also evidence from our Stage 1 well testing that we are recovering both Natural
Hydrogen and Helium to surface from multiple formations at such an early testing stage indicates that we
are well on the journey 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. We look forward to the recommencement of testing in April.”
The Directors of Gold Hydrogen Limited (Gold Hydrogen, ASX: GHY, the Company) 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.
Overview of Initial well Exploration Testing Operations on the Ramsay 1 and Ramsay 2 Wells
The primary objective of the Ramsay 1 and Ramsay 2 well testing program is to obtain gas and fluid samples
for compositional and isotopic analysis, which will be undertaken by established local and international
third-party laboratories. This was achieved by the initial testing program, with further samples to be
collected following the resumption of testing activities in April.
Secondary objectives of the well testing program include the recovery of Natural Hydrogen and Helium at
surface from reservoir fluid and gas inflow into the well bore, and quantifying the inflow rates. These
objectives have been achieved by the initial testing program, and will continue to be pursued following
the resumption of testing activities in April.
Well testing operations have been taking place with sampling conducted by SGS together with Petro Lab
and CSIRO. The gas fluid samples will be sent to various local and international laboratories for full gas
composition and noble gas isotope analysis. Ongoing data and results will be received periodically, but it
is expected that these analyses will take several months to fully complete.
From the well testing data obtained, Gold Hydrogen will better understand the characteristics of the
Natural Hydrogen and Helium reservoirs. 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 a future pilot plant / proof-of-concept plant
design.
Well Testing - Interim Results
The initial results from the Ramsay 1 well test demonstrate that Natural Hydrogen can be recovered at the
surface from fluid flow from reservoir below the total loss zone at 316mMD. This confirms the Company’s
interpretation that not only are Natural Hydrogen and Helium present in the different reservoir units at
the Ramsay 1 location (as per Ramsay 1 MDT results recorded at the time of drilling), but it also confirms
that both can be recovered at the top of the well bore through natural fluid flow from a large bare foot
completion.
The well test of Ramsay 2 is progressing, with initial results from the deeper zones indicating that
permeability in the fractured basement and dolomitic Kulpara sections are exceeding expectations and
allowing free fluid flow into the well bore. Both Natural Hydrogen and Helium were recovered at surface
during the different inflow tests, and the in-depth analysis of the various samples acquired and the inflow
rates is ongoing, and will continue following the resumption of testing activities in April.
Analysis of the recovered gas at surface from Ramsay 1 indicated levels of oxygen comparable with the
composition of the lifting gas used to evacuate the fluid from the well bore. This suggests no oxygen
enrichment occurs from in-situ gas from within the reservoirs, and this is supporting the view that no
measurable free oxygen is present in the fractures and pores space in the different reservoir units. Oxygen
measured within the MDT samples taken from Ramsay 1 and Ramsay 2 is therefore most likely to be air
contamination, rather than a true compositional measurement of the gas from the reservoir pore space.
As outlined in the Company’s previous ASX releases of 6 and 19 December 2023, the MDT sample
recovered from 778mMD during the drilling of Ramsay 2 recorded a raw Helium concentration of up to
6.8% with significant amounts of oxygen present in the MDT sample. Based on the observations of the
recently completed Ramsay 1 well test, this MDT sample will require correction for the interpreted air
contamination, resulting in a most likely true concentration of Helium in the MDT sample recorded during
the drilling of Ramsay 2 of up to 17.5%.
This is believed to be among the highest concentrations of Helium found in the world and which could be
attributed to its presence in a non-petroleum system setting. By comparison, a recent large discovery
reported by Pulsar Helium found a Helium concentration of 13.8% (prior to any required air-correction)
from Jetstream 1 well in Minnesota, USA1.
Well testing at Ramsay 1 has been finalised, and testing of Ramsay 2 is around 70% complete. Testing has
now been suspended due to limits on the well test crews’ continuous working days, and will recommence
in early April.
Stage 2 Well Testing Operations and Planning
Stage 1 well testing of Ramsay 1 has demonstrated that Natural Hydrogen can be recovered at the surface
from fluid flow from reservoir.
The Stage 1 well test of Ramsay 2 is progressing, with initial results from the deeper zones indicating that
permeability in the fractured basement and dolomitic Kulpara sections are exceeding expectations and
allowing free fluid flow into the well bore. Both Natural Hydrogen and Helium were recovered at surface
during the different inflow tests, and the in-depth analysis of the various samples acquired and the inflow
rates is ongoing, and will continue following the resumption of testing activities in April.
These results have given the Company confidence to move to a Stage 2, extended exploration production
style test, that will provide additional information on how future development / production wells may
behave. This further information will feed into the design of a future proof-of-concept pilot plant.
Planning is underway for Stage 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 various 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 prospective
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 projects.
First Key Step on the Journey to Future Potential Development
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 be potentially developed over
time.
There is very little data available for dedicated Natural 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.2
Helium is extremely valuable and indicatively, longer-term bulk pricing is expected to approximate USD450
per Mcf (thousand cubic feet).3
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.
Ongoing 2024 Activities
To progress the current focus area of the Ramsay project, and to further explore the balance of PEL 687, a
large scale regional 2D seismic project is being designed and costed with acquisition planned for Q2/Q3
2024. The objectives for the seismic program are to assist in the delineation of the potential Natural
Hydrogen and Helium accumulation(s), and to support the identification of future drilling targets on the
Yorke Peninsula.
Planning is also underway for further exploration drilling activities.
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.