HyTerra Limited Announces Drilling Contract for Nemaha Project
HYT (HYT) Share Update July 2024 Tuesday 23rd
HyTerra Signs Drilling Contract for Nemaha Project
HyTerra Limited (ASX: HYT) has announced a significant step forward in its Nemaha Project in Kansas, USA, by signing a drilling contract with Murfin Drilling Company, Inc. The operations are set to commence by mid-September 2024.
Instant Summary:
- Drilling operations to start early September 2024.
- Murfin Drilling Company selected as the contractor.
- Permits received for two well sites: Sue Duroche 3 and Blythe 13-20.
- Murfin Drilling has a long history, having drilled over 20,000 wells.
Drilling Contract Details
HyTerra Limited (ASX: HYT) has contracted Murfin Drilling Company, Inc. to drill wells for its 100% owned subsidiary, HYT Operating LLC. The drilling operations will take place on the Nemaha Project in Kansas, USA, starting on or before September 16, 2024. Murfin Drilling, founded in 1926, is one of the leading drilling companies in the USA Midwest, with over 20,000 wells drilled to date.
Permits to drill have been received for two well sites: Sue Duroche 3 and Blythe 13-20. More permits are being prepared for additional hydrogen and helium prospects. HyTerra representatives will soon visit Kansas to finalize safety requirements and meet with stakeholders, consultants, and contractors.
Well Objectives
Blythe 13-20 aims to confirm the hydrogen occurrence observed in the Scott 1 (1982) well in Morris County and will drill significantly deeper into untested formations, including fractured Precambrian Basement rocks. HyTerra has approximately 6500 net acres of owned and operated lease holdings geologically contiguous to this well.
Sue Duroche 3 aims to confirm the historic hydrogen and helium occurrence observed in Sue Duroche 2 (2009) and test the deeper potential of the fractured Precambrian Basement at this location. HyTerra has approximately 3450 acres of owned and operated lease holdings geologically contiguous to this well.
About Murfin and Rig 116
Murfin Drilling Company, Inc. is a 4th Generation family-owned business headquartered in Wichita, Kansas. They are a service industry leader with 17 active drilling rigs working across multiple states in the Mid-Continent region. Rig 116 is a hydraulic telescoping super single drilling rig equipped with a 220k lbs single mast and a 600HP hydraulic top-drive. For additional safety, the rig features a hydraulic pipe handling catwalk and a 9'' Regan Annular 3K PSI & Double Ram Preventer for well control.
The material terms of the drilling agreement include the commencement of operations for the first well on or before September 16, 2024. The contract also contains costings and technical data on market rates and other customary terms.
This announcement marks a significant milestone for HyTerra, potentially boosting investor confidence and stock value. The involvement of a reputable contractor like Murfin Drilling adds credibility to the project. Successful drilling operations could lead to the discovery of valuable hydrogen and helium reserves, positively impacting HyTerra's market position.
Investor Reaction:
Investors and analysts have shown optimism regarding the announcement. The selection of Murfin Drilling, a well-established company, has been well-received. Some investors are eager to see the results of the drilling operations, which could significantly enhance HyTerra's asset portfolio.
Conclusion:
HyTerra's signing of a drilling contract with Murfin Drilling Company for the Nemaha Project is a promising development. Investors should keep an eye on the progress of the drilling operations and the potential discoveries of hydrogen and helium reserves. This project could be a game-changer for HyTerra and its stakeholders.