D3 Energy has acquired two promising exploration permits in South Australia’s Arckaringa Basin, marking a strategic move to diversify its helium and hydrogen portfolio alongside its South African assets.
- Acquisition of PEL 121 and PEL 122 permits via Unleash Energy share purchase
- Permits located in emerging helium and hydrogen hotspot of Arckaringa Basin
- Identified drill-ready prospects Hydrohelix and Cootanoorina with promising analogues
- Low-cost entry with minimal work commitments and low holding costs
- Plans underway for independent resource certification and joint venture funding
Strategic Acquisition in Emerging Basin
D3 Energy Limited (ASX – D3E) has taken a significant step to broaden its helium and hydrogen exploration footprint by acquiring 100% of Unleash Energy Pty Ltd, which holds two contiguous exploration permits, PEL 121 and PEL 122, in South Australia’s Arckaringa Basin. This acquisition positions D3 Energy within a rapidly developing region gaining attention for its helium and hydrogen potential.
The Arckaringa Basin, covering approximately 80,000 square kilometres, remains lightly explored but shows strong geological promise. It shares similarities with the nearby Amadeus Basin, where wells have recorded notable helium and hydrogen concentrations beneath salt layers, a key factor for trapping these gases. D3 Energy’s technical work has identified seismic evidence of salt structures and basement rocks that could serve as effective seals and sources for helium and hydrogen accumulation.
Drill-Ready Prospects and Portfolio Diversification
Among the early-stage prospects, Hydrohelix and Cootanoorina stand out as drill-ready targets. Hydrohelix, a large fault-bounded structure within PEL 121, mirrors key geological features of the Mt Kitty-1 well in the Amadeus Basin, including similar depths and salt thickness, but covers a significantly larger area. Cootanoorina, located beneath existing wells that did not penetrate deep enough, offers another compelling target with structural similarities to known helium-rich sites.
This Australian acquisition complements D3 Energy’s flagship helium appraisal project in South Africa’s Free State Province, where the company has already defined significant helium and methane resources and successfully tested wells. The move into South Australia not only diversifies D3 Energy’s portfolio geographically but also offers a low-cost entry with minimal work commitments and low ongoing holding costs, enhancing shareholder value potential.
Next Steps and Funding Strategy
D3 Energy plans to commission an independent resource certification for the Hydrohelix and Cootanoorina prospects, aiming to validate the resource potential ahead of drilling. Concurrently, the company has initiated a joint venture partner process to secure external funding, which will be critical to advancing exploration activities without overextending capital.
While the Arckaringa Basin remains underexplored, the presence of encouraging analogues and the identification of multiple additional leads within PEL 121 suggest substantial upside if initial drilling proves successful. Regulatory approvals are pending, and the company’s focus remains on its South African project, but this acquisition signals D3 Energy’s ambition to become a global helium and hydrogen player.
Bottom Line?
D3 Energy’s South Australian acquisition sets the stage for a new chapter in helium and hydrogen exploration, with early prospects and funding plans poised to unlock value.
Questions in the middle?
- How will the upcoming independent resource certification impact investor confidence?
- Which joint venture partners might D3 Energy attract for funding exploration in the Arckaringa Basin?
- What timeline is anticipated for drilling the Hydrohelix and Cootanoorina prospects?