D3 Energy Ltd (ASX:D3E, OTCQX:DNRGF) has expanded its helium and natural gas footprint in South Africa and strengthened its funding position during the March 2026 quarter, as it continues to advance its flagship ER315 project and broader exploration strategy.
The company’s latest quarterly report highlights regulatory progress across its Free State acreage, alongside a $6.12 million capital raising to support upcoming drilling, seismic work and engineering studies.
Managing director and CEO David Casey said the quarter marked “a period of significant progress” as D3 executed its strategy amid volatile market conditions, pointing to both portfolio growth and improved funding certainty.
Exploration rights expand Free State position
A key milestone came with the formal acceptance of multiple Exploration Right applications (ER391, ER392 and ER393), which are contiguous with the company’s flagship ER315 permit.
These applications overlap existing technical cooperation areas and, if granted, would materially expand D3’s development footprint in the region.
During the quarter, the company also secured a new Technical Cooperation Permit (TCP273) adjacent to ER315, lifting its total acreage in the Free State Province to about 478,699 acres. The permit sits along proven structural trends linked to helium and methane discoveries and provides low-cost exploration optionality.
At ER315 itself, D3 is preparing for the next phase of exploration, including multi-well drilling and seismic acquisition programs.
D3 Energy's South African Assets
Australian expansion advances
In Australia, D3 continued progressing its helium and hydrogen strategy in South Australia’s Arckaringa Basin, following its acquisition of PEL 121 and PEL 122 earlier in the year.
Work during the quarter focused on planning seismic surveys and refining drill targets across prospects such as Hydrohelix, with proceeds from the recent capital raise earmarked to support these activities.
Hydrohelix prospect – West to East Seismic line LNC 11-26
The seismic interpretation underpins the company’s efforts to better define subsurface structures and prioritise drilling locations.
Arckaringa Project Prospects and Leads
Resource base underpins development case
D3 continues to point to a substantial independently certified resource base at ER315, including:
- Contingent gas resources of 533 BCF (2C), including 21.7 BCF of helium
- Prospective gas resources of 661 BCF (2U), including 27.1 BCF of helium
These figures reinforce the scale of the project as the company moves towards development planning and potential production pathways.
Strong cash position supports next phase
Financially, D3 closed the quarter with around $8.1 million in cash, following the completion of its $6.12 million placement at $0.36 per share, a premium to its IPO price.
Quarterly cash flow data shows net operating outflows of $1.07 million, with exploration and evaluation spending accounting for a significant portion of costs.
The company estimates it has around 7.6 quarters of funding available, providing a solid runway to execute its planned drilling, FEED studies and seismic programs.
With regulatory momentum building and funding secured, D3 is now positioning ER315 and its broader portfolio for the next stage of exploration and development.