The Brisbane based company headed by Alexander Downer said its second exploration drilling at Ramsay discovered hydrogen in mud gas at 192 metres “and has continued to be detected across selected zones within the Cambrian limestone section, with current drilling stopped at 700 metres.

The company said although it was early days the drilling was likely to lead to Australia’s first naturally occurring hydrogen discovery.

Shares in the company have been on a wild ride since the announcement earlier this month of its first drill hole results. Shares have jumped 256 per cent since the start of the month and this morning they broke through the 90 cent level with a rise of 9 per cent when the market opened.

“Due to encouraging signs of hydrogen the decision was made to stop drilling at 290 metres and conduct wireline logs to obtain downhole reservoir samples to that depth,” the company said.

Four downhole samples were recovered and showed elevated hydrogen levels. Drilling was then recommenced.

“Although the results are only preliminary and indicative, Ramsay 2 has confirmed the presence of hydrogen as found in Ramsay 1 and the historical Ramsay bore,” GHY said.

“This further supports the view of the company that there is a natural hydrogen accumulation in the area.”

Managing director Neil McDonald said the results were exciting because it demonstrated that the limestone has suitable porosity and permeability to allow natural hydrogen to be produced.

“Although its early days, this result is likely to lead to Australia’s first natural hydrogen discovery.”