The Pure Hydrogen Corporation CDI (ASX: PH2) share price has blown up over the last few weeks.
Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped 1.6% into the red over the last month, Pure Hydrogen shares have jumped 30% into the green.
Let’s see what’s behind this momentum.
What’s fuelling the Pure Hydrogen share price lately?
The Pure Hydrogen share price has been on the move after the company made two major announcements in the last month.
In early August, the company advised it had delivered “excellent preliminary results” at its Serowe 3 coalbed methane (CBM) gas project.
For reference, the Serowe 3 CBM gas project is a joint venture with BotsGas on the exploration of CBM gas in Botswana, Africa.
Drilling at the site has encountered 41 metres of “interpreted gassy coal seams” and subsequently reduced the risk of commercialisation for the project. In addition, the total thickness of the coal “is more than double the pre drilling estimates”.
Then in late August, the company advised that its Serowe 4 well is to be drilled in mid-September and that “short term flow testing” of its Serowe 3 well will occur prior to this.
It also said that “processing of a new logging method” used in the Serowe 3 well had shown “absorbed gas, free gas and indications of permeability” in several coal target seams.
Speaking on the update at the time, Pure Hydrogen CEO Scott Brown said the company is “encountering much thicker gassy coal seams than (it) first expected” at Serowe.
“We expect a lot of new flow across September and October on Serowe’s progress where we are free carried,” Brown added. “Work is also advancing favourably across our hydrogen portfolio in Australia and we look forward to sharing more progress very soon.”
In the absence of any further price-sensitive news for the company over the last few weeks, it appears that investors are buying Pure Hydrogen shares on these two updates – if not for speculation on the expected new flow as well.
Pure Hydrogen share price snapshot
The Pure Hydrogen share price has climbed 190% this year to date, to be one of the ASX’s major performers. It has also gained 305% over the last 12 months – a nice outsized return for investors.
Both of these results have far outpaced the broad index’s gain of around 25% over the past year.