The Brisbane-based company’s shares rocketed to 60 cents yesterday, an increase of 138 per cent in a month. They climbed again this morning as high as 76 cents before falling back.

The increase followed a series of announcements related to the company’s exploration for hydrogen in South Australia where one drill hole discovered strong results for naturally occurring hydrogen as well as helium.

Orbit Capital Greg Baynton posted on social media that it had taken the market a few weeks to work out what 74 per cent hydrogen purity and 4 per cent helium purity might mean commercially.

“But the maket is starting to work it out,” he said.

“Drilling of Gold Hydrogen’s second well is close now. Hold onto your hats and fasten seatbelts.”

GHY also signed memorandums of understanding with Wasco and H2Site which would enable the fast tracking of a proof-of-concept hydrogen pilot plant, which was subject to the overall results of the drilling program and it was this issue that raised concerns within the ASX.

The ASX queried whether there was anything legally binding about the MOUs, which GHY said there wasn’t. It also repeated the proof-of-concept pilot plant was contingent on the overall results.

The ASX also stressed that announcements made on its platform “should not be used as a guise to publish material that is really promotional, political or tendentious in nature” and asked GHY to point out where in the announcement was information that would have a material effect on the share price.

In response, highlighted several parts of the release which it said could lead investors to consider it price sensitive, but said it depended in some form of commercialisation which was what the pilot plant would achieve.

“Each element of the progression thus facilitated is likely to be value-accretive to shareholders,” GHY said.

“Shareholders and investors who have followed the company’s progress would be aware that there is currently only one field in the world producing natural hydrogen and using it as a localised source of energy.

“The company’s Ramsay project, if successfully developed, would be teh second such field in the world, including in a unique geological setting, with an Australia-first and potentially world-first outcome in the sense of converting a raw gas stream into high purity hydrogen for fuel cell usage, pursuant to the arrangements outlined in the MOUs, the subject of the November 6 release.

“The company acknowledges that the MOUs are non-binding and must ultimately be replaced by contractual arrangements should the initial technical aspects of the collaboration prove fruitful, but nevertheless considers the execution of the MOU to be a material first step tpwards the potential commercialisation of the Ramsay project. ”

The existing commercial natural hydrogen project is in Mali.