Australia's HyTerra Exits US Geneva Natural Hydrogen Project and Adjusts Exploration Focus

en.Wedoany.com Reported - On November 10, Australian natural hydrogen exploration company HyTerra decided to withdraw from the joint development agreement for the Geneva natural hydrogen project in Nebraska, USA, and concentrate its exploration funding and technical resources on the Rift Play exploration area in Kansas. The company had previously invested a cumulative US$2.67 million to acquire a 16.03% interest in the Geneva project. Following the exit, it will be released from a subsequent investment commitment of US$17.33 million and expects to recognize a non-cash impairment loss of approximately A$7.5 million. The adjustment also involves subsequent drilling plans, ranking of exploration targets, and an independent review of resources.

The Geneva project is located in Fillmore County, Nebraska, USA. The original cooperation agreement was signed between HyTerra's wholly-owned subsidiary Neutralysis Industries and Natural Hydrogen Energy. Under the original agreement, HyTerra was required to invest a cumulative US$5 million to complete the first-phase interest acquisition and a further US$15 million to advance the second phase. Following the exit, the company will relinquish the 16.03% project interest it had acquired, with no return of prior invested funds, and its subsequent funding obligations under the relevant agreement will also terminate. HyTerra retains independent mineral rights over 1,197 acres in Fillmore County at a 100% interest; these assets are not within the scope of the joint development agreement being exited.

The Rift Play exploration area in Kansas covers more than 80% of HyTerra's mineral rights acreage in the state, which are wholly-owned and independently operated by the company. Production testing at the McCoy-1 exploration well previously led the company to place greater emphasis on the distance between exploration targets and natural hydrogen source rocks. Existing geological data indicate that the Rift Play is closer to the inferred Midcontinent Rift hydrogen source rocks than the previously drilled Ridge Play well locations. The company has incorporated McCoy-1 test data into its new exploration evaluation system and, while completing the technical assessment of the Rift Play, has suspended further evaluation of McCoy-1 and additional drilling in the Ridge Play.

The Larson 1-14 exploration well, originally scheduled for drilling in October 2026, has now been deferred. The well still holds a valid drilling permit and retains its status as a priority exploration target. HyTerra is integrating McCoy-1 well test results, external research materials, geological data, and laboratory analyses to re-rank the various targets in the Rift Play. Laboratory studies on selected Midcontinent Rift rock samples have observed hydrogen generation under controlled conditions, and the results are being used to refine the evaluation of potential hydrogen sources and trap conditions. Based on the assessment results, the company plans to drill Larson 1-14 or a higher-ranked target during the 2027 drilling season.

HyTerra has engaged independent energy consultancy RISC Advisory to conduct a review of potential natural hydrogen and helium resources within its Kansas mineral rights, covering free gaseous hydrogen, helium, and stimulated hydrogen resource potential. The review is scheduled for completion in the fourth quarter of 2026. Over the next six months, the company will also complete the integration of Kansas geological data, ranking of Rift Play targets, and well location selection and wellbore design for the next exploration well, providing a technical basis for subsequent drilling investment decisions.