D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF)’s ER315 project in South Africa’s Free State has delivered its first certified reserves, with net methane reserves of 5.45 billion cubic feet (bcf) (1P), 10.91 bcf (2P), and 17.36 bcf (3P), alongside helium reserves of 0.353 bcf, 0.706 bcf, and 1.124 bcf across the same categories.
The certification, independently completed by Sproule ERCE, covers only the production right application (PRA) area—roughly 15% of the ER315 permit and just 9% of D3 Energy’s broader tenement portfolio. Within this PRA, the reserves relate to the initial 16 wells planned along the western Virginia fault line, representing only 37% of the currently proposed development.
Production Right Application Area.
With the reserves report now in hand, D3 expects to submit its production right application in the coming weeks—around 12 months ahead of schedule and under budget.
“The independent Reserve certification by Sproule ERCE at ER315 is a significant milestone for D3 Energy and is a particularly impressive first step given the very small area it covers compared to our broader portfolio,” D3 Energy managing director and CEO David Casey said.
“Results from ER315 have exceeded expectations, with drilling and production testing yielding excellent results which have enabled this earlier and larger than excepted reserve certification. It is essentially the last piece of the puzzle which will allow us to apply for what will potentially be only South Africa’s second onshore production licence.
More about the maiden reserves certification
This key milestone with the maiden independent reserves certification for its ER315 project, paves the way for submission of its Production Right application in the coming weeks.
The certification, conducted by global consultancy Sproule ERCE, estimates net methane reserves at:
- 5.5 billion cubic feet (bcf) (proved, 1P)
- 10.9 bcf (proved and probable, 2P)
- 17.4 bcf (proved, probable and possible, 3P)
Helium reserves are estimated at:
- 0.353 bcf (1P)
- 0.706 bcf (2P)
- 1.123 bcf (3P)
Reserve Volumes.
Reserve Volumes by Subcategory.
Contingent Resource Volumes.
The certified reserve volumes relate solely to the initial development of 16 wells along the Virginia fault line within the western portion of the Production Right application area, comprising three Proven Developed Non-Producing (PDNP) wells and 13 Proved Undeveloped (PUD) wells.
Volumes from the Ventersburg fault line, located on the eastern side of the application area, remain classified as contingent resources pending additional drilling and testing.
This reserve certification marks the conversion of previously reported contingent resources into reserves. The company notes that prospective resources remain unchanged.
“It is worth noting that the current reserves have only been assigned to a portion of our initial Production Right application area which is soon to be submitted, and it is important to highlight that this represents a mere fraction of D3 Energy’s overall acreage portfolio and delineated fault zones, which our geological model has confirmed are key conduits for successful production of helium and natural gas,” Casey said.
“From a personal perspective, this is a genuine once in a career asset which holds material upside in addition to the incredible value D3 Energy has already unearthed through our initial work, which has been completed substantially ahead of schedule and budget.”
Production Right application
D3 Energy is in the final stages of preparing its Production Right application, which is on track to be submitted ahead of schedule and below budget. The application area and the newly certified maiden reserves cover only a small portion of the company’s broader acreage and delineated fault zones. This supports D3 Energy’s geological model and highlights the substantial exploration and development potential that remains across the ER315 project area.