HyTerra Ltd (ASX:HYT) has signed a Memorandum of Understanding with the Ras Al Khaimah Department of Energy granting the company exclusive rights to negotiate a commercial agreement over Block 1, an area of approximately 256 km² within the RAK South area of the Emirate of Ras Al Khaimah, United Arab Emirates.

Key Points

  • HyTerra signed an MOU with the RAK Department of Energy covering Block 1, approximately 256 km² within the RAK South area of Ras Al Khaimah, UAE
  • The MOU provides HyTerra with exclusive rights to negotiate a commercial agreement, commencing on signing and continuing until the earlier of 180 days after technical work is completed or MOU expiry
  • The MOU has an 18-month term and does not commit HyTerra to drilling or material exploration expenditure
  • RAK DoE is expected to provide a comprehensive subsurface data package and a commercial term sheet within 14 days of signing

MOU Terms and Exclusivity Provisions

Under the MOU, HyTerra and RAK DoE will jointly undertake geological and subsurface review of the Exclusive Area, review available geophysical data and develop strategies for potential future data acquisition, undertake laboratory analysis of available geological samples, develop integrated geological and hydrogen generation models, and develop conceptual exploration and well designs. The MOU contains binding provisions relating to exclusivity, confidentiality, intellectual property, indemnities, termination and dispute resolution, and is otherwise non-binding in relation to the proposed commercial agreement. The MOU does not itself grant HyTerra any exploration tenure or licence.

Semail Ophiolite Geology and Previous Exploration

The Semail Ophiolite extends across Oman and the UAE and contains extensive ultramafic rocks capable of generating hydrogen through water-rock reactions such as serpentinisation. The ophiolite exposes approximately 20,000 km² of Late Cretaceous oceanic crust and upper mantle, including sections up to approximately 15 km thick. Previous exploration and technical studies undertaken by the Ras Al Khaimah Department of Energy and its technical partners identified potential natural hydrogen plays in Ras Al Khaimah. Published third-party surface sampling across the northern Semail Ophiolite recorded hydrogen-rich gas seeps containing up to approximately 88% hydrogen after air correction.

Second Strategic Position Along Semail Ophiolite

The Ras Al Khaimah MOU follows HyTerra's existing MOU with ARA Natural Resources LLC in Oman, announced in March 2026, establishing a second strategic relationship along the Semail Ophiolite geological trend across two jurisdictions. The company disclosed that the Ras Al Khaimah opportunity directly advances Pillar 3 (Global Growth) of its Strategic Plan announced in December 2025. RAK South is located close to established industrial areas and existing gas infrastructure. There is no certainty that HyTerra and RAK DoE will enter into a binding commercial agreement, whether within the exclusivity period or otherwise, or as to the terms, scope or timing of any such agreement.