The Pure Hydrogen Corporation CDI (ASX: PH2) share price is sliding during early-afternoon trade. This comes despite the company announcing an update on the Serowe Project in Botswana.
At the time of writing, the oil and gas exploration company's shares are fetching for 24 cents, down 5.88%.
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What did Pure Hydrogen announce?
Investors are dragging Pure Hydrogen shares down today regardless of the company's latest progress report.
According to its release, Pure Hydrogen advised that its joint venture partner, BotsGas will commence spudding this week. The drilling campaign in Project Serowe aims to confirm geological modelling of the area to extract coal bed methane (CBM).
The campaign consists of two separate stages of three appraisal wells each (6 wells in total).
Serowe 2, the first stage 1 well is on track to be spudded in the coming days, followed by Serowe 3 & 4 wells. Pure Hydrogen noted the campaign will exceed the minimum acreage commitments which should ensure permit renewals in the future.
Two of the wells will be converted to production wells, with the remaining third well used to identify high-grade CBM.
The second stage 3 wells are expected to be drilled sometime later this year. However, this is dependent on the results and knowledge gained on the drilling program that is scheduled to commence.
Pure Hydrogen managing director, Scott Brown commented:
Serowe is an exciting asset with good upside and the gas price in Botswana is very high at the moment. BotsGas' team is well-placed to execute this program. They have the experience and the technical skills to unlock the value from these highly prospective leases.
Pure Hydrogen share price summary
It has been an eventful 2021 for Pure Hydrogen shares, with investors recording gains of around 200%. The company's share price reached a multi-year high of 44 cents in March, before treading lower since.
Pure Hydrogen commands a market capitalisation of roughly $81 million, with approximately 313 million shares outstanding.
