D3 Energy has reported encouraging progress in its South African helium and methane operations, highlighted by improved gas flow rates from the Nooitgedacht Major well and an upgraded US OTCQX listing to broaden investor reach.
- Improved gas flow confirmed at Nooitgedacht Major well
- Environmental Impact Assessment and FEED underway for Production Right PR016
- Seismic and drilling preparations advancing for 2026 campaigns
- US OTCQX Best Market listing upgraded to enhance investor access
- Strong cash position of approximately AUD 3.5 million maintained
Steady Progress in South African Operations
D3 Energy Limited (ASX, D3E) has delivered a solid quarterly update for the period ending 31 December 2025, underscoring ongoing momentum in its flagship South African helium and methane projects. The company’s retesting of the Nooitgedacht Major well yielded sustained gas flows at slightly higher rates than previous tests, reinforcing confidence in the resource base underpinning its ER315 tenement in the Free State Province.
Alongside this, D3 Energy has advanced its Environmental Impact Assessment (EIA) and Front End Engineering and Design (FEED) work for the Production Right application PR016. These preparatory steps are critical for securing regulatory approval and setting the stage for the planned development of helium extraction facilities.
Strategic Preparations for 2026 Exploration
The company is also gearing up for a 2D seismic program and drilling campaigns scheduled for the second quarter of 2026. Acquisition of additional telluric data during the quarter will aid in optimising well locations, potentially enhancing future resource and reserve estimates. Concurrently, scouting for well and pipeline routes has commenced, reflecting a methodical approach to infrastructure planning.
In Australia, D3 Energy is progressing discussions around a potential farm-out of its Hydrohelix prospect in the Arckaringa Basin, focusing on funding structures and partner participation in upcoming drilling activities. While still preliminary, these talks signal the company’s intent to expand its footprint in critical gas resources beyond South Africa.
Broader Market Engagement and Financial Health
On the corporate front, D3 Energy upgraded its US listing to the OTCQX® Best Market, a move designed to increase visibility and accessibility among international investors. This strategic step complements the company’s ongoing efforts to attract broader capital support as it advances its projects.
Financially, D3 Energy reported a cash balance of approximately AUD 3.5 million at quarter’s end, with exploration and evaluation expenditures tracking under budget. The underspend is attributed to lower-than-expected drilling costs and better production outcomes, allowing the company to accelerate its Production Right application with fewer wells than initially planned.
Certified reserves at ER315 remain robust, with gross gas reserves of 7.21 billion cubic feet (1P) and net helium reserves of 0.353 billion cubic feet, alongside significant contingent and prospective resources. These figures position D3 Energy as a noteworthy player in the evolving global energy transition, particularly in the niche but growing helium market.
Looking Ahead
As D3 Energy continues to navigate regulatory approvals, technical development, and commercial negotiations, the coming months will be pivotal. The outcomes of the EIA, the success of seismic and drilling campaigns, and progress on farm-out agreements will collectively shape the company’s trajectory and market valuation.
Bottom Line?
D3 Energy’s steady operational and financial progress sets the stage for critical developments in 2026, with market watchers keenly awaiting drilling results and regulatory milestones.
Questions in the middle?
- When will the Environmental Impact Assessment for PR016 be finalised and approved?
- What are the timelines and expected outcomes for the upcoming seismic and drilling campaigns?
- How might potential farm-out agreements in Australia impact D3 Energy’s capital structure and project development?