Early Reserve Certification Puts D3 Energy’s South African Licence at Regulatory Crossroads

A Milestone for D3 Energy’s South African Ambitions

D3 Energy Limited (ASX – D3E) has announced its maiden independently certified methane and helium reserves for its ER315 Production Right application area in South Africa’s Free State province. This certification, conducted by global consultancy Sproule ERCE, marks a pivotal step forward for the company, allowing it to submit its Production Right application to the South African regulator roughly 12 months ahead of schedule and under budget.

Reserves Detail and Scope

The certified net methane reserves stand at 5.45 billion cubic feet (bcf) proved (1P), 10.91 bcf proved and probable (2P), and 17.36 bcf proved, probable and possible (3P). Helium reserves are also significant, with 0.353 bcf (1P), 0.706 bcf (2P), and 1.124 bcf (3P). Importantly, these figures cover only the Production Right application area, which represents approximately 15% of ER315 and just 9% of D3 Energy’s total contiguous tenements.

The reserve volumes are based on the planned development of 16 wells along the Virginia fault line, a key geological feature for gas accumulation. This is a conservative subset, representing only 37% of the wells planned within the application area, leaving considerable upside potential in the broader acreage and mapped fault zones.

Economic Viability and Development Plans

Sproule ERCE’s certification included a discounted cash flow economic model confirming the commercial viability of the reserves across all categories. The project plans modular methane and helium processing facilities, with gas compressed and transported via high-pressure tube trucks, eliminating the need for pipeline infrastructure. First sales are targeted for 2028, reflecting a relatively swift path to market.

D3 Energy’s Managing Director Casey described the asset as “a genuine once in a career” opportunity, highlighting that the certification exceeded expectations and was achieved ahead of schedule and budget. The company is advancing gas sales negotiations based on an existing term sheet, with land access agreements well progressed.

Strategic Implications and Outlook

This maiden reserve certification not only unlocks the regulatory submission but also validates D3 Energy’s geological model, which identifies fault zones as critical conduits for helium and natural gas production. The reserves upgrade contingent resources to reserves status, though significant contingent resources remain unconverted, underscoring the potential for future growth.

With the Production Right application imminent, D3 Energy is positioning itself as a key player in South Africa’s emerging onshore gas sector, potentially securing only the country’s second onshore production licence. The company’s recent expansion into Australia’s Arckaringa Basin further diversifies its portfolio in critical gases, aligning with global energy transition trends.