The Pure Hydrogen Corporation Limited (ASX: PH2) share price is rocketing today amid the company making two announcements to the market.
Shares in the clean energy company currently trade for 42 cents each, a gain of 21.74%. Earlier in today's session, they hit a high of 44 cents a share.
The Pure Hydrogen share price is far outstripping the S&P/ASX 200 Energy Index (ASX: XEJ) today. It's up 0.21% while the S&P/ASX 200 Index (ASX: XJO) is down 0.07%.
Let's discover why bulls are buying this stock.
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What did the Pure Hydrogen announce today?
The company's major news of the day is that The Kalahari Gas Corporation has been awarded a drilling contract to explore the Serowe 3 coalbed methane (CBM) project in Botswana.
Serowe 3 is a joint venture between Pure Hydrogen and Australian oil and gas company BotsGas that has extensive interests in Botswana.
The project is located in a high-grade CBM region and is expected to yield two exploration wells and four pilot wells by the end of 2023. Another Australian energy company Botala holds a 70% interest in the project and is the operator.
Botala Energy CEO Kris Martinnick said:
We are pleased to have appointed Kalahari Gas Corporation as our drilling contractor to complete near term drilling. This represents a significant step forward in the development of the Serowe CBM Project with a dedicated focus on further exploration and appraisal of the field providing growth opportunities.
Other news announced today is that Pure Hydrogen is planning to drill two wells and test a third well for its Serowe Gas Project. The project is scheduled to begin in September.
The company is also planning to discuss potential clean energy plans with Botala Energy. Lastly, they plan to drill four more wells in 2023 as part of an appraisal and production program.
Pure Hydrogen share price snapshot
Despite today's share price rise, shares in Pure Hydrogen are down 23% year to date. However, the company is valued at 171% more than it was a year ago.
Its 12 month performance far outperforms the ASX 200 benchmark index which has lost 7.3% in that time.
It's also outstripping the energy sector index. It's gained 30% in a year.
At the current share price, Pure Hydrogen's market capitalisation is $143 million.
