Building on a landmark discovery announced just weeks ago, Max Power Mining is moving swiftly to expand its search for natural hydrogen in Saskatchewan. The company has scheduled a follow-up drill program for February at its Bracken prospect, aiming to validate and broaden the potential of what it calls Canada’s first confirmed subsurface natural hydrogen system.
Lawson Discovery Sets the Stage
The impetus for this accelerated schedule stems from highly encouraging results at the Lawson well near Central Butte, detailed by the company on January 16th. Key findings from that drilling include:
- Hydrogen concentrations reaching 286,000 parts per million (ppm), equivalent to 28.6% H₂.
- Evidence of free gas flow to the surface, demonstrating robust initial flow rates and pressures.
- The presence of helium in gas samples from sealed core tubes, with values as high as 8.7%.
- Indications of a potentially larger reservoir system supported by a strong driving mechanism.
Bracken: Testing a New Geological Concept
The upcoming Bracken drill hole represents a strategic shift in exploration approach. Located within the permitted, 75-kilometer-wide Grasslands Project area, Bracken was identified as a high-priority, near-term target using an integrated geophysical and geological workflow. This analysis incorporated both historical 2D seismic data and 34.3 line-kilometers of newly acquired proprietary 2D seismic.
According to Chief Geoscientist Steve Halabura, the Bracken well is designed to test a stratigraphic play concept. This contrasts with the structural model that led to the Lawson discovery and guides exploration along the broader 475-kilometer “Genesis Trend.” Success at Bracken would not only confirm the hydrogen system but significantly widen the company’s exploration blueprint and future opportunity set.
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Corporate Strategy and Financial Snapshot
Max Power controls a substantial land position in the region, with approximately 1.3 million acres currently permitted and applications pending for an additional 5.7 million acres.
For the first half of the year, the company has outlined a multi-faceted work program for the Lawson area. This includes resource modeling and estimation, a 47-square-kilometer 3D seismic survey, and a confirmation well to assess commercial deliverability.
On the corporate front, Max Power recently issued 3,415,000 stock options with an exercise price of CAD $1.08 and a three-year term. It also granted 2,990,000 Restricted Stock Units (RSUs) to management, directors, and advisors. The company has entered into marketing and communications agreements with Apollo Shareholder Relations for six months (fees of $45,000 plus 100,000 options) and with BW Venture Strategies for $10,000 per month, also for a six-month term.
In its most recent trading update (data as of January 23), Max Power’s shares closed at CAD $1.07, giving the company a market capitalization of roughly CAD $101.75 million. Its 52-week trading range is CAD $0.155 to CAD $1.08.
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