D3 Energy Ltd ( ASX:D3E , OTCQX:DNRGF ) closed the September quarter with two wells completed at Nooitgedacht in South Africa, a further 47,000 acres added to its Free State position and a maiden independently certified Prospective Resource established in South Australia.
The quarter was followed by two further milestones, with remedial work restoring gas flow at NGT245 E and returning a helium concentration of 5.2%, while D3 Energy's South African project was granted Strategic Integrated Project status .
The company ended September with around A$4.6 million in cash.
Nooitgedacht drilling completed
D3 Energy drilled NGT245 E to 363 metres and NGT245 D to 348 metres within the northwestern portion of its 100%-owned ER315 permit.
Both wells were completed on time and on budget without safety incidents, with gas flowing to the surface at NGT245 E during drilling and detected at NGT245 D before cementing.
The wells are around 43 kilometres north of the Bloemskraal area, where D3 Energy has booked reserves supporting its Production Right Application.
They were designed to test faulting and associated fractures along the Homestead Fault, with the broader objective of expanding the ER315 reserve base.
Logging identified deeper water-producing zones in both wells that inhibited gas flow because of the reservoirs' extremely low pressure, prompting a remedial cementing program.
After quarter-end, the work successfully isolated deeper water zones at NGT245 E and restored gas flow, with sampling confirming 5.2% helium.
Further remedial work is planned ahead of production testing, while remediation of NGT245 D is expected to resume after a period of stabilisation.
Nooitgedacht well locations – NGT245 E, NGT245 D and the Nooitgedacht Major borehole
Seismic and acreage position expanded
D3 Energy also commenced a high-resolution 2D seismic program across Nooitgedacht during the quarter.
The survey is designed to improve structural interpretation, integrate the latest drilling information and support future well targeting.
The company further strengthened its Free State position with the award of five Technical Cooperation Permits covering about 47,000 acres contiguous with existing permits.
D3 Energy now holds granted and applied-for land position covering around 469,847 acres across the Free State.
The five new permits will initially support low-cost geological and geophysical studies, with D3 Energy intending to seek Exploration Rights over the areas following that work.
South Australian resource established
In Australia, D3 Energy established its maiden independently certified Prospective Resource for the Hydrohelix and Cootanoorina prospects within the 100%-owned PEL121 permit in South Australia's Arckaringa Basin.
Arckaringa Project Prospects and Leads
The 2U unrisked Prospective Resource comprises 54 billion cubic feet of helium, 88 billion cubic feet of hydrogen and 226 billion cubic feet of methane.
D3 Energy holds 100% of PEL121 and PEL122, covering 5,865 square kilometres, with two prospects and nine leads identified within PEL121.
The company is progressing environmental approvals for seismic and drilling activities planned for 2027-28 and continues to assess potential joint venture participation.
PEL121 Unrisked Prospective Resource Volumes (Hydrohelix and Cootanoorina)
Strategic project status strengthens development pathway
After quarter-end, D3 Energy's ER315 and PR016 project was granted Strategic Integrated Project 20f status under South Africa's Infrastructure Development Act.
The designation brings the project into South Africa's national infrastructure program and may provide greater government coordination as D3 Energy progresses its Production Right Application and development studies.
Financial position
D3 Energy closed September with A$4.64 million in cash, compared with A$6.74 million at the beginning of the quarter.
Net operating cash outflow was A$2.12 million, including A$1.36 million spent on exploration and evaluation activities.
Expenditure was primarily directed towards ER315 exploration, environmental impact assessment and front-end engineering and design work for PR016, along with corporate costs.
Next steps
D3 Energy will continue remediation and production testing work at Nooitgedacht while integrating drilling and seismic results to refine future well locations.
The company will also progress the PR016 Production Right Application and development studies, undertake work across its expanded Free State permit position and advance environmental approvals for future exploration in South Australia.
Further testing at NGT245 E and NGT245 D will be important in determining the potential contribution of Nooitgedacht to the broader ER315 reserve and development strategy.
