Shares in Pure Hydrogen Corporation Ltd (ASX: PH2) are losing ground in afternoon trade today and are now almost 9% down at 40.5 cents apiece.
The plunge comes even as there is no market-sensitive information from the company. Although Pure Hydrogen did provide an update on its Botswana Serowe gas project. Read on for more.
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What did Pure Hydrogen announce?
Pure Hydrogen advised that it encountered significantly more coal than pre-drill estimates at its gas project in Botswana.
Specifically, its Serowe 4 well encountered 31 metres of interpreted gassy coal seams, a result more than 150% thicker than predrilled estimates.
Further, its Serowe 5 well is spudded and is proceeding ahead with the depth of the well at 350 metres. It says the well will be drilled to total depth, which is estimated at 470 metres, after which logs will be run for the well.
As a result of the thicker coals encountered at Serowe 4, the cost of "proving a multi Trillion Cubic Feet coal seam gas field in central southern Africa can be substantially reduced".
The release notes that the Botswana Serowe Gas Project has received third-party certified 2C resources of 160.6 billion cubic feet and Prospective Resources of 10.07 trillion cubic feet.
As previously stated by the company in November, the estimates of Contingent Resources for the project were "prepared in accordance with the 2018 Petroleum Resources Management System (PRMS)".
The "Contingent Resources" will be revised again in 2022 after the results of Serowe 4 and 5, per the announcement.
Pure Hydrogen also advised it is progressing its joint venture with Botala 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 release today, Pure Hydrogen Managing Director Scott Brown mentioned:
The Serowe Gas Project is shaping up well with the continuation of excellent results to date from the multi-well appraisal program, particularly the much thicker gassy coal seams in Serowe 3 and now Serowe 4.
Pure Hyrdrogen share price snapshot
Despite today's dip, the Pure Hydrogen share price has gained more than 406% in the past 12 months after rallying another 360% this year to date.
Yet, in the past month, it has fallen 21% in the red and is also down more than 13% in the last week of trading.
