D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF) is trading higher on fielding strong helium and natural gas results as it progresses production testing at Nooitgedacht Major, a legacy borehole within the northern area of ER315, in South Africa’s Free State Province.
Incredibly encouraging data
The test work at Nooitgedacht Major is part of a methodical exploration and appraisal program to realise the full potential of ER315.
D3 managing director and CEO David Casey said: "The initial production data from Nooitgedacht Major are incredibly encouraging and particularly when considering the much shallower depths compared to wells in the Bloemskraal area to the south.
“These results, coupled with our recent successes in the southern area of ER315, continue to reinforce the significant potential of ER315 as well as our adjacent permits, to become a premier world-class helium and natural gas asset."
The data the company gleans from this testing will point the way to well interference, spacing and planning for future drilling campaigns.
The average flow rate of 102 Mscfd for the first seven days of the 14-day test period is comparable to southern legacy boreholes, despite being notably shallower.
Low development costs
“As such, it would appear that we have unlocked a potential new production province to the north but at significantly lower development costs due to shallower drilling depths translating to considerably lower drilling costs,” said Casey.
The testing program has collected samples for analysis by a SANAS-accredited laboratory.
Preliminary results show helium concentrations of 5.6% and methane at 83.2%, which speak to the asset’s helium and natural gas potential.
This positive news follows recently completed testing at RBD01, which revealed world-class helium concentrations of 6.2% and provided critical data on the reservoir’s deliverability.
Investors are also encouraged by the progress with shares as much as 23.08% higher on the ASX this morning to A$0.08.