The Pure Hydrogen Corporation CDI (ASX: PH2) share price is lifting higher today following an update on its Venus-1 Pilot Well.
During early afternoon trade, the oil and gas exploration company's shares are up 4.17% to 25 cents.
Image source: Getty Images
What did Pure Hydrogen announce?
Investors are pushing Pure Hydrogen shares higher today. This movement comes after the company's latest positive release.
In a statement to the ASX, Pure Hydrogen advised that its Venus-1 Pilot Well has recorded initial gas breakout. The positive update also comes just after the company's first 50 barrels of water production.
Pure Hydrogen stated that the early gas breakout confirms its findings of high gas reservoirs situated in the Walloon coals.
It was estimated that the gas breakout rate stood at 84,000 Computational Fluid Dynamics (CFD). This is expected to increase as the controlled pressure draw down expands into other high gas fields at the Venus-1 well.
The result of a flow test conducted by the company, along with the current gas pressure, could lead to fast-tracking commercial gas flow. A second stage enhancement to the Venus-1 vertical production well is currently being considered for execution in the coming weeks.
Additionally, the company noted that Venus-1 could convert from 130PJ 2C gas reserves to 2P gas reserves if commercial gas flows can be proven. 2P denoted to the term of "proven and probable reserves", while 2C is defined as "best estimate of contingent resources".
If Pure Hydrogen can achieve certification of these gas reservices, it's possible a sizeable gas sales contract awaits.
Pure Hydrogen managing director, Scott Brown commented:
Pure Hydrogen is encouraged by the initial gas breakout after only 50 barrels of water production at Venus-1. It is a positive step towards proving commercial gas flows and the certification of material gas reserves at Project Venus located near the town of Miles in Queensland. We will continue to update shareholders on progress as our program unfolds.
Pure Hydrogen share price summary
Since the beginning of 2021, Pure Hydrogen shares have taken off, accelerating by more than 175%.
The company's share price reached a multi-year high of 44 cents in March, before profit takers swooped in.
Pure Hydrogen has a market capitalisation of around $76 million, with more than 313 million shares outstanding.
