HyTerra has significantly expanded its lease acreage for the Nemaha hydrogen and helium project in Kansas, tripling its footprint from 12,880 to 39,000 acres.
This 26,200-acre addition includes highly prospective areas in Washington and Marshall Counties, which lie above the ancient Mid-Continent Rift, a failed tectonic rift considered a rich source of naturally occurring hydrogen. Historic hydrogen deposits in the area are believed to stem from iron-rich rocks within the rift, migrating upwards along faults toward the Nemaha Ridge.
A Strategic Move for Future Drilling
The additional acreage strengthens HyTerra’s prospects as the company prepares for a six-well drilling program after its extraordinary general meeting (EGM) later this year. This EGM will allow shareholders to vote on a proposed $21.9 million investment from Fortescue, which would secure a 39.8% stake in HyTerra and provide funding for the drilling program. The vote is anticipated before November 11, 2024, with drilling to commence after the investment is finalized.
Predictive Model Guides Expansion
HyTerra’s predictive model for hydrogen and helium identified the newly leased area as particularly promising. The company’s executive director, Dr. Avon McIntyre, credits the rapid expansion to funds raised earlier this year and the efforts of their Kansas-based leasing team. “Securing significant acreage before drilling is key to adding value for shareholders,” said McIntyre, emphasizing the importance of expanding the company’s geologically diverse drilling targets.
Plans for Continued Growth
Looking ahead, HyTerra plans to secure even more leases in Kansas while obtaining additional good permits. As the company continues its infill leasing efforts, the expanded acreage puts HyTerra in a stronger position to explore and develop hydrogen resources in this promising region.
