D3 Energy has successfully drilled and intersected gas in the first of two wells at its Nooitgedacht site in South Africa, with the second well underway. The results support expanding helium reserves and future production rights.
- Second well NGT245 D spudded and drilling ongoing
- First well NGT245 E flowed gas to surface on budget
- Target formations in ER315 permit being appraised for helium and methane
- 2D seismic program planned to enhance geological data
- Outcomes to inform reserve growth and Production Right applications
Successful Gas Flow from First Well at Nooitgedacht
D3 Energy (ASX:D3E) has marked a key milestone in its South African helium and natural gas exploration with the first of two wells at Nooitgedacht flowing gas to surface. The NGT245 E well was drilled to 363 metres on time and within budget, intersecting the target gas-bearing fracture zones as planned. This early gas flow provides a promising signal for the company’s efforts to expand its reserve base within the ER315 permit in the Free State Province.
Second Well Drilling Advances with Surface Casing Installed
The follow-up well, NGT245 D, was spudded on 30 July 2026 and has reached 80 metres with surface casing already installed. Drilling is progressing towards the target formations in the Ventersdorp and Witwatersrand sequences, which are known for faulting and fracturing that can host helium and methane accumulations. Once drilling reaches total depth, the well will be logged and production tested to assess reservoir deliverability and gas composition.
Seismic Survey to Complement Drilling Data
To bolster geological understanding of the area, D3 Energy plans to commence a 2D seismic program at Nooitgedacht in the coming weeks. This seismic data will complement the drilling results and help refine models of the subsurface structure, which is crucial for optimising well placement and evaluating the potential for further reserve growth. The Nooitgedacht area sits along the Homestead Fault corridor, a key structural feature within the ER315 permit.
Strategic Importance of ER315 Permit and Production Rights
ER315 is D3 Energy’s flagship permit in South Africa, covering nearly 480,000 acres in the Free State Province. The permit has already delivered independently verified helium concentrations up to 8%, supporting a Production Right application lodged last year. The ongoing drilling and seismic activities aim to convert additional exploration rights into production rights, expanding the company’s footprint and resource base. Managing Director David Casey highlighted the efficiency of the drilling program and the significance of intersecting gas-bearing zones north of the existing Production Right area.
Implications for Future Development and Regulatory Approvals
The results from NGT245 D’s production testing will be critical for informing development strategies, including well spacing and interference considerations. These insights will feed into future submissions to South Africa’s Petroleum Agency SA (PASA) for additional Production Rights. The program reflects D3 Energy’s methodical approach to building a robust helium and natural gas resource base amid growing global demand for critical gases. The company’s broader portfolio also includes promising permits in Australia, though the focus remains on advancing ER315 towards commercialisation.
Bottom Line?
Drilling momentum at Nooitgedacht sets the stage for reserve growth and regulatory progress, but production test results will be the next key milestone.
Questions in the middle?
- Will production testing confirm commercially viable flow rates from NGT245 D?
- How will the upcoming seismic data influence drilling plans and resource estimates?
- What timeline can investors expect for regulatory decisions on additional Production Rights?