White_Hydrogen_Gold_Rush__How_Naturally_Occurring_H2_Could_End_

White_Hydrogen_Gold_Rush__How_Naturally_Occurring_H2_Could_End_

Jeffrey Leftenant

The collection of texts provides an overview of white hydrogen

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Executive Summary of Oil and White Hydrogen

Global Capital Commodities (GCC) Wolfcamp Oil & White Hydrogen Gas Development Program: Detailed BriefingExecutive Summary

The Global Capital Commodities (GCC) Wolfcamp Oil & White Hydrogen Gas Development Program in the Nebraska Basin presents a "Tier-1 Unconventional Oil & Gas Discovery in an Underexplored Basin," leveraging proprietary Satellite Nuclear Magnetic Resonance (SNMR) surveys. The project, modeled after the Permian Basin's success, has completed its lead well to ~11,000 feet, identifying significant oil, natural gas, and verified white hydrogen resources. It is now poised for scalable horizontal development. The total estimated project CAPEX (Phase I + II) is $98,786,320. GCC is offering various investment frameworks, including equity or JV participation, with attractive returns designed for different investment tiers. The project benefits from strategic infrastructure, secured permits, and perfected title rights, ensuring investor protection and project control.

Key Themes and Most Important Ideas/Facts1. Project Overview and Resource Profile

  • Discovery and Location: A "rare, high-impact discovery in the Nebraska Basin, targeting the prolific Wolfcamp formation across three benches." The lead well has been drilled to ~11,000’ TVD and is cased and logged, intercepting all targeted hydrocarbon zones.

  • Confirmed Resources (Oil & Gas Only):Oil Resource In-Place: "88 million barrels" with an "Estimated Market Value @ $50/bbl: $1.1 billion."

  • Associated Natural Gas: "1.8 TCF" (modeled Wolfcamp ratios) with an "Estimated Market Value @ $2.75/MMBtu: ~$4.95 billion."

  • White Hydrogen Potential: "White Hydrogen In-Place (TBD Development): 6.593 TCF," with "Estimated Recoverable H1 (50%): 3.297 TCF." Development strategy remains "under evaluation, with future CAPEX staged and optional." The source notes that "Hydrogen-bearing zones at extreme depths and pressure suggest possible condensed or liquid H1 state—favorable for efficient capture."

  • Projected Production (Oil & Gas Only):Vertical Well – Initial Gross Production: "~450 BOEPD (oil/gas combined) = $22,750/day."

  • Horizontal Well – Average Gross Production: "~675 BOEPD = $34,125/day."

  • 12 Horizontal Wells – Peak Output: "~8,100 BOEPD = $409,500/day gross revenue" (assumes 65% oil cut, with realized pricing of $50/bbl oil and $2.75/MMBtu gas).

2. Capital Expenditures (CAPEX) and Project Phases

The project is structured into two main phases with detailed cost estimates:


  • Total Project CAPEX (Phase I + II): $98,786,320.

  • Phase I – Near-Term Capital Deployment (Operational Launch): Total estimated cost of $24,786,320.

  • Completion of Existing Vertical Well: $2,700,000

  • Offset Vertical Well (11,000’ TVD): $3,800,000

  • Land Acquisition (2,560 Acres): $14,136,320

  • Lease Acquisition (8,000–10,000 Acres): $4,150,000

  • Phase II – Full-Scale Horizontal Development: Total estimated cost of $74,000,000.

  • 12 Horizontal Extensions (Initial Laterals): $18,000,000

  • Four Long-Lateral Horizontal Wells: $56,000,000

  • Purdy Oil Agreement Specifics (as part of GCC): The initial investment by a PARTNER in the Purdy Oil Exploration Agreement requires wiring $10,000,000 to Global Capital Commodities LLC (GCC) "upon execution of the agreement." This sum is intended to cover the "cost for completion of the Global Capital Commodities LLC (GCC) well in the J-Sand, Wolfcamp, and Admire Formations A, B." Importantly, "Purdy Oil, LLCGlobal Capital Commodities LLC (GCC) will be carried for all costs through completion of the well." The estimated budget for "Phase I (Completion of Existing Wellbore) and Phase II (Drilling Down and Testing for Hydrogen Gas) combined, including payments of legal and debt settlement with a contingency, is $10,000,000."

3. Investment Framework and Returns

  • General Project Returns (Wolfcamp Executive Summary):

  • "Equity or JV participation available."

  • "25% recovery interest available to first-in capital partners."

  • "Year One Cash Flow (25% share from Wolfcamp production): Estimated at $37.5 million."

  • "Modeled ROI exceeds 7.9x capital over full field life."

  • Partner's Returns and Working Interest (Purdy Oil Agreement):

  • Cash Flow Share: "Upon successful completion of Phase I, the PARTNER will receive 50% of the cash flow before payout and 25% after payout."

  • Payout Definition: "Payout is defined as 100% recovery of the completed well costs, including operating costs and associated expenditures."

  • Working Interest: "The working interest earned by the PARTNER will be equal to the total costs for exploration, drilling, and completion to production of each well divided by 25." This applies to all exploratory and developmental wells.

  • Specific Investment Tiers and ROI (Wolfcamp Capital Injections and Investor Returns):

  • Option 1: $200,000,000 Investment Tier: "2% ROI of 25% of what GCC receives."

  • Option 2: $500,000,000 Strategic Injection: "3% ROI."

  • Option 3: $1,000,000,000 Anchor Partnership: "5% ROI."

  • These new ROI structures "are designed to accommodate larger capital allocations and offer competitive returns given the massive resource potential."

4. Infrastructure and Legal/Regulatory Aspects

  • Strategic Infrastructure:"Three major natural gas pipelines within one mile."

  • "Crude oil pipeline access nearby for immediate offload."

  • "Greeley, CO refineries available for crude processing."

  • "Future hydrogen processing facility TBD in joint venture with major."

  • Permits, Legal & Title Security:"Fully bonded and permitted under Nebraska Oil & Gas Commission."

  • "Lease Agreement executed with Partner governs mineral and operational rights."

  • "Perfected title rights ensure investor protection and project control."

  • Royalties and Net Revenue Interest (NRI): "Production from the wells is subject to a 12.5% landowner royalty and a 12.5% overriding royalty (ORR), totaling 25%, leaving a 75% Net Revenue Interest (NRI) available." "Assignments of WI and NRI will occur within 30 days of the completion of each well."

  • Legal and Debt Matters (Purdy Oil):Purdy is plaintiff in two lawsuits, seeking to acquire real estate and mineral interests valued at $750,000.

  • Purdy owns Archer Drilling, LLC, with four drilling rigs valued at $1.9 million.

  • Purdy is defending three claims from unpaid vendors totaling $895,000, which they believe can be settled for $500,000.

  • Legal cost estimate through judgment of a trial: $250,000.

  • The budget for Phase I & II completion includes payments of legal and debt settlement.

5. Project Background and Timeline

  • Discovery Method: "Proprietary Satellite Nuclear Magnetic Resonance (SNMR) surveys, which successfully isolated fluid-rich anomalies at depth."

  • Timeline: "Drilling and bonding were completed in late 2022." "Initial delays due to external financing interruptions have been resolved, positioning the project for full-scale development." The lead well is "cased and ready, with all necessary permits and infrastructure access secured."

Conclusion

The Global Capital Commodities Wolfcamp Development Program presents a significant investment opportunity in the Nebraska Basin, distinguished by confirmed, substantial oil and natural gas reserves, and considerable verified white hydrogen potential. The project has a clear development pathway, supported by existing infrastructure and robust legal and regulatory frameworks. The detailed financial projections and diverse investment options, including high-tier ROI structures, aim to attract significant capital, positioning the venture for substantial revenue generation and long-term growth. Investors are encouraged to perform due diligence, as the projections are based on current subsurface modeling, commodity pricing, and preliminary engineering assumptions.