D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF) has expanded its helium and hydrogen footprint alongside its flagship assets in South Africa, after finalising the acquisition of two exploration permits in South Australia’s Arckaringa Basin, just south of Oodnadatta and north-east of Coober Pedy.
The company has now secured Petroleum Exploration Licences PEL 121 and PEL 122 through the purchase of 100% of the shares in Unleash Energy Pty Ltd. As part consideration, D3 Energy has issued 5,000,000 fully paid ordinary shares to the vendors of Unleash Energy. The shares are escrowed for 12 months.
Map of South Australian Helium and Hydrogen Permit Activity.
Geologically, the basin is considered analogous to the Amadeus Basin about 250 kilometres to the north, where gas discoveries have been recorded.
At Mt Kitty-1, testing returned helium of 9%, hydrogen of 11.5% and methane of 13%. A second well, Magee-1—drilled to the north-east of Mt Kitty—penetrated below the Gillen Salt and encountered helium of 6% and methane of 39%.
The company noted these two wells remain the only sub-salt penetrations across the wider region to date.
Large, contiguous permit package
PEL 121 and PEL 122 form contiguous blocks with a combined area of 5,865 km².
The permits provide exposure to early-stage helium and hydrogen exploration opportunities in the basin and the company has already identified two early-stage prospects within the newly acquired ground — Hydrohelix and Cootanoorina.
Hydrohelix is described as drill-ready and relatively shallow. It sits within PEL 121 and is interpreted as a large fault- and dip-bounded structure in the middle of the Boorthanna Trough, with an areal closure of 148 km².
In addition, D3 Energy has identified nine other early-stage leads on PEL 121. Work is expected to begin to advance these leads to prospect status.
Ackaringa Project Prospects and Leads.
Drilling success at either Hydrohelix or Cootanoorina could potentially open a new basin for helium and hydrogen exploration, with the broader inventory of leads providing follow-on exploration upside.
Adds to South Africa helium portfolio
The South Australian acquisition adds geographic diversification to D3 Energy’s portfolio, which is anchored by a helium appraisal project in the Free State province of South Africa.
In that province, D3 Energy has previously defined a helium and methane Contingent Resource and has also reported a maiden reserve associated with Production Right application 16.