HyTerra’s Nemaha Project in Kansas has entered a critical new phase with the company confirming expansion of its drilling program to three firm wells, supported by early signs of a viable natural hydrogen and helium system. The Blythe 13-20 well, completed on time and budget, is the most recent development, with mud gas readings and geological data reinforcing initial findings from the earlier Sue Duroche 3 well. The decision to add a third well, McCoy 1, reflects growing confidence in a play that remains high-risk but potentially transformative for the emerging natural (white) hydrogen market.
Deep Drilling, Deeper Expectations
Drilled to a depth of 5,300 feet (1,615 meters), Blythe 13-20 is nearly 2.5 times deeper than the historical Scott-1 well from 1982, which reported hydrogen concentrations of up to 56% in the sedimentary section. Located just 1.4 km east of that well, Blythe 13-20 traversed both sedimentary rock and Precambrian basement, probing a new geological play that had not previously been tested at such depths.
The preliminary mud gas log data, acquired in real-time during drilling and collected at the surface, indicate the presence of both hydrogen and helium. These findings are undergoing independent laboratory verification by Isotech Laboratories in Illinois, which previously confirmed up to 96% hydrogen and 5% helium from Sue Duroche 3. While promising, HyTerra has acknowledged the uncertainty tied to mud gas sampling and surface air contamination, reinforcing the exploratory nature of the campaign.
Strategic Expansion Amid Geological Promise
Based on early data, HyTerra quickly converted both Sue Duroche 3 and Blythe 13-20 into appraisal wells. The company’s rapid move to add McCoy 1—located 9 km from the Sue Duroche site—to the drilling sequence underscores a fast-evolving geological thesis and confidence derived from cumulative data acquisition. The Murfin 116 drilling rig, currently on a scheduled crew break, will be mobilized to the McCoy 1 site by late June, maintaining continuity across the exploration effort.
This expansion is part of a broader 12-month exploration program funded through an investment by Fortescue Future Industries Technologies Pty Ltd. The program aims to test HyTerra’s thesis that the Nemaha Ridge region harbors commercially recoverable volumes of naturally occurring hydrogen and helium, a potential low-cost alternative to conventional hydrogen production via electrolysis or SMR (steam methane reforming).
Technical Execution Meets Commercial Unknowns
Schlumberger’s involvement in the data acquisition process, including wireline logging and formation evaluation, adds technical robustness to the campaign. However, the viability of white hydrogen as a commercial commodity remains far from settled. Natural hydrogen systems are poorly understood compared to oil and gas, with key uncertainties surrounding resource extent, recharge rates, and extraction economics.
HyTerra holds 6,860 net acres around the Blythe 13-20 site and also maintains a 16% interest in the Geneva Project in Nebraska, operated in joint development with Natural Hydrogen Energy LLC. The company has emphasized that both Nemaha and Geneva could be linked to nearby industrial off-takers, such as ammonia manufacturers and petrochemical facilities, leveraging existing infrastructure for early commercialization, though no binding off-take agreements have yet been disclosed.
White Hydrogen Hype vs. Execution Reality
Despite investor enthusiasm surrounding natural hydrogen exploration globally, McKinsey and other consultancies have noted that commercial validation remains the sector’s bottleneck. With no established production benchmarks or long-term field pilots yet available in North America, HyTerra’s current program is as much about de-risking the play as it is about proving viability.
The company itself has cautioned investors on the geological and commercial risks involved, citing the early-stage nature of the exploration. Concentration levels, flow rates, and long-term productivity remain unknown until long-duration testing is conducted. Nevertheless, the speed with which HyTerra is scaling drilling operations suggests a calculated bet on early mover advantage in what could become a significant frontier for clean hydrogen.
For now, the next datapoint will be compositional results from Blythe 13-20. If they confirm the presence of high-concentration hydrogen, McCoy 1 could mark the transition from exploration to early-stage delineation, offering not just technical validation but strategic clarity in a market still defining its resource base.
