D3 Energy Limited: Unlocking Helium and Natural Gas Potential at Nooitgedacht Major

Key Highlights

• Gas flow rate of 102 Mscfd recorded during a 7-day stabilised flow test.
• Helium concentration measured at 5.6%, with methane at 83.2%.
• Northern area of ER315 demonstrates significant production potential at shallower depths.
• Results support lower-cost development opportunities and expand exploration scope.

D3 Energy Limited (ASX: D3E), a key player in South Africa’s helium and natural gas exploration, has announced encouraging production test results from the Nooitgedacht Major borehole in the northern region of ER315. This legacy borehole has demonstrated high productivity, underscoring the potential of the northern area as a new production province within the permit.

Promising Test Results

Production testing at Nooitgedacht Major yielded an average stabilised gas flow rate of 102 Mscfd over a 7-day period. Gas analysis, conducted by a SANAS-accredited laboratory, revealed:

• Helium Concentration: 5.6%.
• Methane Concentration: 83.2%.

The flow results are on par with those from deeper wells in the southern Bloemskraal area, highlighting the prospectivity of this shallower northern region. The borehole’s depth ranges from 100 to 300 meters, compared to significantly deeper wells in the south, suggesting lower drilling and development costs.

Strategic Implications for ER315

These results confirm that the northern area of ER315 holds strong potential as an additional production province. Managing Director and CEO David Casey stated: “Unlocking the northern region’s potential offers D3 Energy (ASX: D3E) a compelling opportunity to expand production with lower capital expenditures. This success, paired with southern developments, positions ER315 as a leading helium and natural gas asset.”

The strategic benefits include:

• Cost Efficiency: Shallow drilling depths significantly reduce development costs.
• Resource Expansion: Enhanced understanding of gas reservoirs and production deliverability supports future well-planning and broader exploration efforts.
• Global Significance: High helium concentrations bolster D3 Energy’s (ASX: D3E) role in meeting growing global demand for helium, essential for medical, technological, and industrial applications.

Regional Significance of Nooitgedacht Major

The Nooitgedacht Major borehole is part of D3 Energy’s (ASX: D3E) comprehensive exploration and appraisal program for ER315. Situated in South Africa’s Free State Province, the project covers:

• Gross Thickness: Karoo Formation at 115m and Witwatersrand Quartzite at 275m.
• Pay Zone: Fault fracture zones located approximately 250m below the surface.
• Recoverable Resources: High concentrations of helium and methane with minimal impurities.

Broader Context of Helium and Natural Gas Exploration

With global helium supplies under pressure, D3 Energy’s (ASX: D3E) progress in the Free State Province has far-reaching implications. Helium’s critical role in sectors such as healthcare (MRI machines), space exploration, and semiconductor manufacturing makes it a strategically important resource. Methane, the primary component of natural gas, continues to play a pivotal role in the global energy mix during the transition to cleaner energy.

The next steps would be to:

• Conduct detailed reservoir analysis to optimize well spacing and interference management.
• Develop a strategic drilling campaign to expand production potential across ER315.
• Leverage insights from Nooitgedacht Major and Bloemskraal testing to refine cost-effective development strategies.

Market Outlook and Investment Potential

D3 Energy’s (ASX: D3E) ER315 project positions the company as a critical supplier of helium and natural gas, vital to both local and global markets. The promising results from Nooitgedacht Major enhance the project’s attractiveness for investors seeking exposure to high-demand resources.

As helium and natural gas continue to gain strategic importance, D3 Energy’s (ASX: D3E) proactive exploration and development strategies underscore its commitment to delivering value for stakeholders and contributing to the global energy transition.