D3 Energy detects gas in South African helium hunt well

• Gas detected in NGT245D well ahead of cementing
• Production casing successfully run and cemented in NGT245 E and NGT245 D
• Geophysical logging completed
• Both wells waiting for reservoir pressure to normalise ahead of future testing

Helium explorer D3 Energy (ASX: D3E) has identified gas in the NGT245D well at its Nooitgedacht project, within the ER315 permit in the Free State, South Africa.

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After a brief delay due to weather, both the NGT245 E and NGT245 D wells have been successfully cased and cemented at its Nooitgedacht project.

As previously reported however, gas was observed flowing to surface at NGT245 E while drilling.

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

MD and CEO, David Casey, said given the extremely low pressure at this location, it is unknown how much time will be required for the reservoir to normalise ahead of future testing, following drilling and completion operations.

“Its pleasing to have completed another drilling program safely on time and on budget, and even more pleasing to have encountered gas in both wells while drilling, which was unexpected given the extremely low reservoir pressure in this area compared to those used during drilling,” Mr Casey said.

“Notwithstanding this, and unlike our wells to the south, it will take some time before the impact of drilling and completion operations on the reservoir dissipates and further testing can be undertaken.”

D3 Energy holds a 479,409-acre land position across the Free State Province of South Africa, comprising ER315, PR016, Exploration Right Applications ER386, ER391, ER392 and ER393 and Technical Cooperation Permit TCP273. The company’s flagship ER315 permit has delivered independently verified helium concentrations of up to 8% and is the subject of a Production Right Application (PR016) currently under assessment by South Africa’s Petroleum Agency SA (PASA).

The initial Production Right Application area covers 15% of ER315 and approximately nine per cent of D3’s total exploration right acreage, with the balance of the land position, including ER386, representing the company’s broader appraisal and development pipeline.

ER386 is contiguous with ER315 and is located within the same Virginia Fault structural corridor that hosts D3’s certified reserves and contingent resources at ER315 and PR016.

D3E was down 1.52% to 32.5¢. Mkt cap $49.86M.

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