D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF) Ltd is expanding its global footprint with the acquisition of two highly prospective helium and hydrogen exploration permits in South Australia's Arckaringa Basin, which spans approximately 80,000 square kilometres in South Australia and remains one of the more lightly explored regions within the state's growing helium and hydrogen exploration corridor.
Geologically, the basin shares similarities with the Amadeus Basin located 250 kilometres to the north, where notable gas discoveries have been made. The Mt Kitty-1 well recorded concentrations of helium (9%), hydrogen (11.5%) and methane (13%), while the Magee-1 well—drilled northeast of Mt Kitty—penetrated below the Gillen Salt and encountered helium (6%) and methane (39%). These two wells remain the only sub-salt penetrations in the broader region to date.
Map of South Australian Helium and Hydrogen Permit Activity.
Expanding beyond South Africa
This latest acquisition diversifies D3 Energy’s asset base beyond its flagship helium project in South Africa’s Free State province, which allows the company to position itself as a multi-jurisdictional helium and hydrogen explorer.
The company secured Petroleum Exploration Licences (PEL) 121 and 122 through the purchase of Unleash Energy Pty Ltd, which gives it access to a combined area of 5,865 square kilometres in a region gaining attention for its clean energy potential.
The acquisition provides a low-cost entry into South Australia’s emerging helium and hydrogen exploration corridor, with minimal work commitments and holding costs.
The permits are strategically located near Coober Pedy and Oodnadatta and are complemented by favourable regulatory conditions and historical geological data.
“This is an important next step on the back of early success in South Africa for D3 Energy to become a significant player in the helium sector across the globe,” D3 Energy managing director David Casey said.
Portfolio diversification
“The addition of new acreage in the emerging helium and hydrogen exploration hotspot of South Australia provides portfolio diversification with the potential to create significant shareholder value via low-cost exploration work supporting a farmout process with external funding from industry partners.
“While the Arckaringa is relatively underexplored with no sub-salt penetrations to date, the fact that the only wells drilled beneath the salt and into fractured basement in the adjacent and analogous Amadeus Basin both recorded excellent helium concentrations of 6% and 9%, with Mt Kitty-1 also measuring 11% Hydrogen, provides significant scope and encouragement for success.”
A key technical feature supporting the prospectivity of the Arckaringa Basin is the presence of a salt layer capable of acting as a trap for helium and hydrogen accumulations. However, no wells have yet penetrated deep enough in the basin to directly test the pre-salt sedimentary units or the underlying fractured basement.
Project evaluation work by D3 Energy has identified several thick salt structures on seismic that are considered sufficient to seal major offset faults—an encouraging indicator for potential gas accumulations.
Early-stage prospects pinpointed
Technical assessments by D3 Energy have already pinpointed two early-stage prospects – Hydrohelix and Cootanoorina – with the former considered drill-ready.
Hydrohelix spans 148 square kilometres within PEL 121 and exhibits structural features analogous to Mt Kitty-1 in the nearby Amadeus Basin, where helium concentrations of up to 9% and hydrogen up to 11.5% have been previously recorded.
The company will initiate independent certification of resources over both prospects and is advancing a joint venture partner process to support exploration funding.
Nine additional leads have been identified across PEL 121, offering potential follow-on opportunities pending the success of initial drilling.
Other Leads in the Boorthana Trough on PEL 121.
“While this acquisition is an exciting opportunity, ER 315 remains our primary focus where we have generated outstanding results to date,” Casey added.
“Our work in South Africa sees us positioned to notably accelerate lodgement of a Production Right application ahead of schedule and significantly under budget.”