Helium Hits 6.2% at ER315 as D3 Energy Debuts on OTCQB Market

Strong Production Testing Results at ER315

D3 Energy Limited’s December 2024 quarterly activities report underscores significant progress in its South African helium and natural gas project, ER315. The standout highlight is the production testing at borehole RBD01, which recorded a helium concentration of 6.2%, the highest yet in the company’s testing program, alongside a steady flow rate averaging 93 million standard cubic feet per day (Mscfd). This milestone confirms the presence of world-class helium concentrations and reinforces the reservoir’s deliverability potential.

Further drilling and testing at RBD12, completed safely and on budget to a depth of 594 meters, revealed active gas flow with helium concentrations of 4.8% and methane at 84.3%. Although flow rates were initially lower due to well bore damage (high 'skin'), the upward trend in gas flow towards the end of testing suggests promising remediation opportunities to unlock production capacity.

Expansion into Northern ER315 and Resource Implications

Post-quarter, production testing at Nooitgedacht Major, a legacy borehole in the northern ER315 area, confirmed an average flow rate of 95 Mscfd with helium at 5.6% and methane at 83.2%. This discovery points to a new production province within ER315, notable for its shallower depths (100m to 300m) which could translate into significantly lower development costs. The company’s Managing Director, David Casey, highlighted this as a critical development that broadens the project’s resource base and supports future production right applications.

D3 Energy’s independently certified contingent and prospective resources at ER315 remain substantial, with recoverable helium resources ranging from approximately 13.8 billion cubic feet (1C) to 35.2 billion cubic feet (3C) and prospective resources potentially exceeding 76.9 billion cubic feet (3U). These figures position ER315 as a significant helium asset in the global energy transition landscape.

Corporate Milestones and Financial Position

On the corporate front, D3 Energy’s commencement of trading on the OTCQB Venture Market under the ticker DNRGF marks a strategic milestone. This move enhances liquidity and visibility among US investors, broadening the company’s global investor base and facilitating access to capital markets beyond Australia.

Financially, the company reported cash reserves of approximately AUD 7 million at quarter-end, supporting ongoing exploration, drilling, and production testing activities. Key expenditures during the quarter focused on exploration and evaluation within ER315, alongside administrative and corporate costs. The company also received an initial payment of AUD 299,000 under a solar projects compensation agreement, adding to its cash inflows.

Looking Ahead

D3 Energy’s December quarter results demonstrate tangible progress in unlocking the value of its helium and natural gas assets. The combination of record helium concentrations, expanded production zones, and enhanced investor access sets a solid foundation for advancing development plans in 2025. However, challenges such as well bore remediation at RBD12 and the need for continued appraisal drilling remain critical to fully realising the project’s potential.