D3 Energy Ltd has reinforced the helium potential of its flagship ER315 permit in South Africa’s Free State Province with strong results from production testing and a significant expansion of its exploration footprint during the March 2025 quarter.
The company maintains a strong balance sheet with A$6.3 million in cash as at March 31 2025.
Expenditure is tracking below IPO forecast due to reduced drilling costs and stronger-than-expected testing outcomes, accelerating the timeline for production right submission.
Extending prospective resources
Production testing at the Nooitgedacht Major borehole confirmed helium concentrations of 5.6% and methane at 83.2%, with average flows of 95 thousand standard cubic feet per day over a 14-day period.
The results extend ER315’s prospective resources to its northern area and are especially notable for the shallower depth of mineralisation, which implies lower development costs.
Regional map showing Nooitgedacht Major and Bloemskraal locations in ER315.
The company is preparing to start the next phase of its appraisal program at ER315, pending final permitting, which is expected shortly. The upcoming work will involve acquiring new telluric and seismic data, alongside the drilling of multiple wells within the permit area.
Planned drill targets will remain focused on shallow-depth locations near known blower wells and fault zones, supporting a strategy of low-cost, low-risk drilling.
“The Nooitgedacht Major results, along with our ongoing appraisal efforts, will play a critical role in supporting our Production Right application and guiding future development plans. In terms of production projects in the Free State, we were pleased to note the success of our neighbour, Renergen, in successfully commencing liquid helium sales from its Virginia Gas Project. This is a major milestone and reaffirms the potential of this area as a world class helium province,” D3 Energy’s managing director and CEO, David Casey said.
Three new TCPs
In parallel, the company was granted three new Technical Cooperation Permits (TCP258, TCP259, TCP260), adding 5,798 hectares of prospective ground near ER315. The newly secured ground bolsters D3 Energy’s strategic position within a globally significant helium province and offers further low-cost exploration opportunities.
Preparation is well advanced for the company’s initial Production Right application over the southern portion of ER315. This area includes wells that returned helium concentrations up to 6.2%. Submission is expected in the June quarter, with approval timelines anticipated to extend over an 18-month period.
“During the quarter, in February, we were pleased to have been granted three additional TCPs, adding further low-cost exploration and appraisal upside adjacent to our existing permits. Additionally, we are preparing the final documentation for our application for a Production Right over a southern portion of ER315, where we have conducted drilling and testing activities and where we have recorded outstanding results," Casey said.
"The March quarter continued the success of D3 Energy’s ongoing appraisal program at ER315. Production testing at Nooitgedacht Major extended the resource potential of ER315 into the northern area, reinforcing the broader production potential of the project.”