D3 Energy Ltd (ASX:D3E, OTCQX:DNRGF) has completed drilling of the second well in its Nooitgedacht program in South Africa’s Free State, bringing the company closer to production testing aimed at assessing gas deliverability and helium and methane concentrations.
The NGT245 D well reached a total depth of 348 metres on time and budget and without safety incidents. Logging is underway ahead of production casing installation, while the drilling rig is currently installing casing at the first well, NGT245 E.
Both wells are within D3 Energy’s 100%-owned ER315 exploration permit and will undergo further evaluation once casing has been installed.
Nooitgedacht location within ER315.
Nooitgedacht drilling program advances
Nooitgedacht is about 43 kilometres north of the company’s Bloemskraal area, where D3 Energy has already booked reserves supporting a Production Right application lodged last year.
The area lies along the Homestead Fault in the northern section of ER315, with the 2 wells targeting faulting and associated fractures within the Ventersdorp and Witwatersrand formations.
The program is designed to assess reservoir deliverability while collecting additional information on helium and methane concentrations.
Once work at NGT245 E is complete, the drill rig will return to NGT245 D to install production casing.
Managing director and CEO David Casey said completion of the second well demonstrated the relatively low-cost and efficient nature of the company’s drilling operations.
He also highlighted gas flowing to surface while drilling the first well as an encouraging result given the exceptionally low reservoir pressure expected in the area.
Both wells are expected to require a period of reservoir stabilisation after casing installation before production testing begins.
Well location map.
Next steps
D3 Energy will complete production casing installation at NGT245 E before returning to NGT245 D.
Following casing installation in both wells, the company plans to undertake further evaluation including flow testing and gas sample compositional analysis. Production testing is expected in the coming weeks after the reservoirs have had time to stabilise.
The work forms part of D3 Energy’s broader exploration and appraisal program at ER315, which is aimed at increasing the company’s reserve base and supporting the conversion of additional exploration areas to production rights.