D3 Energy’s Reserve Certification Raises Stakes Ahead of Production Approval

Milestone Reserve Certification

D3 Energy has marked a pivotal moment in its development journey with the maiden reserve certification of its ER315 permit in South Africa’s Free State Province. Conducted by global energy consultancy Sproule ERCE, this independent certification confirms substantial helium and methane reserves, underpinning the company’s technical and commercial progress. The certified reserves, covering a modest portion of the Production Right application area, include 7.21 billion cubic feet (bcf) of 1P gross gas reserves and 0.353 bcf of net helium reserves, with larger volumes classified under 2P and 3P categories.

Operational Advances and Production Testing

Complementing this certification, D3 Energy reported a 32% uplift in gas flow rates at the RBD03 well, a legacy borehole originally drilled in 1982. The recent clean-out and retesting program elevated average flow rates to 194 thousand standard cubic feet per day (Mscfd), reinforcing confidence in the reservoir’s productivity and the company’s geological model, particularly the role of fault lines in gas migration.

Strategic Expansion and International Growth

Beyond South Africa, D3 Energy has broadened its portfolio through the acquisition of two highly prospective permits in South Australia’s Arckaringa Basin, a region gaining attention for helium and hydrogen exploration. These permits, PEL 121 and PEL 122, offer low-cost entry into a strategically important basin and provide optionality for future infrastructure deployment. Concurrently, the company has strengthened its South African presence by opening a local office and expanding its on-ground team, signaling a commitment to operational excellence and regional engagement.

Financial Discipline and Forward Outlook

Financially, D3 Energy is advancing its Production Right application ahead of schedule and under budget, reflecting disciplined project management. The company holds approximately $5.3 million in cash reserves as of June 30, 2025, and has reported exploration and feasibility expenditures significantly below initial budget estimates. This fiscal prudence, combined with robust technical results, positions D3 Energy well for near-term development and longer-term growth in critical gas markets.

Looking Ahead

With the Production Right application imminent, D3 Energy is poised to transition from appraisal to development, unlocking further value from its extensive resource base. The company’s expanding international footprint and strategic acquisitions underscore its ambition to be a key player in the global energy transition, particularly in helium and hydrogen sectors.