D3 Energy ready for key tests as second well hits target in South Africa

• Total depth reached on second well in program
• NGT245D successfully drilled to total depth of 348m
• Well currently being logged prior to production casing installation
• Drilling rig currently installing production casing at first well in program

D3 Energy (ASX:D3E) has successfully reached total depth in the second of two planned wells at Nooitgedacht NGT245 D, located located within the ER315 permit in the Free State, South Africa.

Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.

This marks the next stage of the company’s ongoing exploration and appraisal programme aimed at increasing the company’s reserve base in ER315 and converting additional exploration right areas (ER’s) to production rights.

The Nooitgedacht area is located approximately 43 km to the north of the Bloemskraal area where the company has already booked reserves to underpin a production right application lodged last year and is positioned along the Homestead Fault that traverses through the northern section of ER315.

The second of two wells, NGT245 D, was drilled to a total depth of 348m on time and budget. The rig then moved back to the first well, NGT245 E to install the production casing and allow logging to commence at NGT245 D. The drill rig will return to NGT245 D to install the production casing in this well once this activity is completed at NGT245 E.

The installation of production casing will allow both NGT245 E and NGT245 D to be further evaluated including flow testing and gas sample compositional analysis once the production casing has been installed in both wells.

The two wells are targeting the faulting and associated fractures in the Ventersdorp and Witwatersrand formations to further assess the reservoir’s deliverability and to collect additional data on helium and methane concentrations.

“The rapid and successful completion of the second well in our programme further demonstrates the low-cost and efficient nature of our drilling operations,” MD and CEO, David Casey, said.

“As we continue to apply the lessons learned from each well, we expect to achieve even greater efficiencies and further reduce costs. This will be particularly important and relevant in a production development scenario.

“Given the as expected exceptionally low reservoir pressure in this area, the flow of gas to the surface in our first well while drilling was an incredibly encouraging, albeit unexpected surprise. It is however anticipated that both wells will need some time after the casing has been installed for the reservoir to stabilise ahead of production testing in the coming weeks.”

D3 Energy’s flagship ER315 permit has delivered independently verified helium concentrations of up to 8.0% and is the subject of a production right application (PR016) currently under assessment by South Africa’s Petroleum Agency SA (PASA).and PR016.

D3E is steady 33.0¢. Mkt cap $49.86M.

Join the discussion: See what HotCopper users are saying about D3 Energy and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.