Reminder1 Sep 2024 21:25
From interview of drilling results ...
David Minchin: I think Bo expected it, but I didn’t. It's a very positive thing. I don't think that either of us were expecting to see up to 10.3% hydrogen in the Cambrian.
I don't want to say too much because we won't know until we're done with wire line and flow testing. But it looks like we might have a hydrogen, helium, and nitrogen system in the Amsden and Charles Formations, and a helium and hydrogen system in the Cambrian strata, which includes the Flathead formation, our primary target. So that's all hugely positive.
The economics around natural geological hydrogen are yet to be proven. But if it works out, you're looking at a quite small addition to your capital cost to build an extra module on your plants to separate hydrogen from helium.
But you’re looking at a big impact on your bottom line because hydrogen can be very profitable when extracted from subsurface.
Proactive: David, what should investors be watching out for next?
David Minchin: Well, next steps are to run the wire line, which we should be targeting to run in the second half of this week, perhaps announcing results early next week.
That will identify areas with reservoir porosity and the gas effect, which we will then target with flow testing. We need to run casing and cement the casing into place. So, cement trucks are on standby and ready to roll. We’ll then be able to do the flow test.