The Pure Hydrogen Corporation CDI (ASX: PH2) share price has soared into the green during afternoon trading, up by 16.13% to 18 cents.
Today's gain comes as Pure Hydrogen gave updates on its Serowe 3 well in an announcement just before lunch time.
Let's investigate further.
A quick recap on Pure Hydrogen
Pure Hydrogen's line of business is in the exploration and development of hydrogen assets.
Its mission is to "become the leader in the development of hydrogen and fuel cell technology in Australia", according to the company.
At the time of writing, Pure Hydrogen has a market capitalisation of $48.6 million.
What could be boosting the Pure Hydrogen share price?
In a positive move for the Pure Hydrogen share price, the company announced it had delivered "excellent preliminary results" at its Serowe 3 coalbed methane (CBM) gas project.
Serowe 3 is a joint venture with BotsGas on the exploration and production of CBM gas in Botswana, Africa.
The well was drilled to a depth of 477 metres, then "encountered 41 metres of interpreted gassy coal seams". This result is more than "200% thicker than pre-drilling estimates".
Moreover, a "short-term stabilised flow test" produced an estimated 54 bbls per day of water, "indicating the natural permeability of the coals" as per the release.
In addition, Pure Hydrogen estimates the risk of commercialisation "using inexpensive vertical well completions" amid other pathways "would now be substantially reduced".
What did management say?
Speaking on the release, Pure Hydrogen managing director Scott Brown said:
This [is an] excellent result for Serowe 3. The well encountering much thicker coals and natural permeability has exceeded our pre-drill expectations. This bodes very well for the remainder of the Serowe Project appraisal program which continues in the next few weeks.
The current drilling program is looking more likely to confirm the presence of a very large and potentially commercial gas field at the Serowe Project.
Pure Hydrogen share price snapshot
The Pure Hydrogen share price has jumped 105% into the green this year to date. It has also gained 169% over the past year.
Consequently, these results have far outpaced the S&P/ASX 200 index (ASX: XJO)'s climb of around 25% over the past year.
