D3 Energy Ltd (ASX:D3E, OTCQX:DNRGF) has started a two-well drilling program at the Nooitgedacht area of its wholly owned ER315 permit in South Africa, targeting an expansion of its helium and natural gas reserve base.
The company has successfully spudded the first well, NGT245 E, in the northwestern portion of ER315 in the Free State Province.
Drilling will target faulting and associated fractures within the Witwatersrand formation to assess reservoir deliverability and gather further data on helium and methane concentrations.
The campaign is also intended to support the conversion of additional exploration areas into production rights.
Testing high-grade helium area
The two-well program comprises NGT245 E and NGT245 D, both positioned near the historical Nooitgedacht Major borehole.
Production testing of that borehole in January 2025 delivered an average flow rate of 95,000 standard cubic feet per day, with helium concentrations of 5.6% and methane concentrations of 83.2%.
Nooitgedacht is around 43 kilometres north of D3 Energy’s Bloemskraal area, where the company has already booked reserves supporting a Production Right application submitted last year.
Both areas are associated with major structural corridors within ER315, with Nooitgedacht positioned along the Homestead Fault.
“The spudding of our first well at Nooitgedacht is another step forward in our methodical appraisal of ER315 as we look to build upon and extend the company’s ER315 reserve base some 40 kilometres to the north,” managing director and chief executive David Casey said.
NGT245 E to inform development decisions
NGT245 E is budgeted to cost approximately A$200,000 to drill and complete.
Should the well successfully intersect gas, D3 Energy plans to undertake production testing to assess flow performance and obtain data relevant to well interference and spacing.
The results will help guide the ongoing development of ER315 and inform potential additional Production Right applications to South African authorities.
Next steps
D3 Energy will complete drilling at NGT245 E before progressing to the second planned well, NGT245 D.
Successful gas intersections will be followed by production testing, with results expected to strengthen the company’s technical dataset and support further reserve definition and permitting activities.
About D3 Energy
D3 Energy is an Australian-listed helium and natural gas exploration company focused primarily on ER315, PR016 and ER386 in South Africa’s Free State Province.
The company holds a 479,409-acre regional land position, with ER315 having returned independently verified helium concentrations of up to 8%.
D3 Energy has also expanded into Australia through the acquisition of prospective helium and hydrogen permits in South Australia’s Arckaringa Basin.