Shares in Pure Hydrogen Corporation Ltd (ASX: PH2) are lifting today and are trading 5% higher at 62 cents apiece. The Pure Hydrogen share price popped from the open and rallied as much as 9% before smoothing off.
This comes after the company's shares fell by more than 9% yesterday and by more than 7% on Tuesday.
Investors are reacting positively to a company announcement on its Botswana Serowe Gas Project, in which it advised of drilling results and an upgrade at the site.
Here are the details.
Image source: Getty Images
What did Pure Hydrogen announce?
Following the integration of the results of its Serowe-2 and Serowe-3 appraisal wells, the company gave an update on its project in Botswana.
The project now has third-party certified 2C resources of 160.6 billion cubic feet (BCF) and prospective resources of 10.07 trillion cubic feet (TCF).
Both of these wells are designed to add substantial resource upgrades and first reserves at the project, should the flow test achieve commercial rates.
Serowe-3 is being set up as a long-term flow test and has encountered 41 metres of interpreted gassy coal seams. This is more than 200% thicker than pre-drilling estimates, and the seams have free gas breaking out of fluids on the surface.
Pure Hydrogen says it is progressing its hydrogen joint venture with partner Botala Energy within Southern Africa and has identified potential offtake parties and sites that could be used for a hydrogen business.
Investors can expect further details of these initiatives in the coming weeks, according to the announcement.
Speaking on the results fuelling the Pure Hydrogen share price, managing director Scott Brown said:
The continuation of the multi-well appraisal program across the Serowe Gas Project is progressing with very encouraging results to date, particularly the much thicker gassy coal seams in Serowe-3. With step-out drilling and Serowe-3 flow testing commencing shortly, we expect additional positive news flow on the Serowe Gas Project's progress where we are free carried. Work is also advancing favourably across our hydrogen portfolio and as we have advised, the Serowe Gas Project could ideally be a feeder to create hydrogen supply for Botswana. We are assessing this opportunity very closely.
The company's Serowe-5 site is also being prepared for drilling while its Serowe-4 well is proceeding, with the depth last reported at 221 metres.
Pure Hydrogen share price snapshot
The Pure Hydrogen share price has shot out of the atmosphere this past year, up 695% in that time.
It has rallied more than 604% this year to date and is up 117% in the past month of trading alone.
