More fit for purpose and accurate metering equipment has proven its worth to D3 Energy. Pic: Getty Images
D3 Energy progressing South African methane, helium testing with more accurate equipment
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- Completed initial production test confirms near doubling of gas flow rates at RBD03
- World class helium compositions of 5.1% now confirmed in RBD10 & RBD03
- D3 Energy to move new metering equipment to test the RBD10 well
Special Report: D3 Energy is pushing ahead with its methane and helium testing program in South Africa after confirming that its new equipment had measured higher gas flow rates at its RBD03 hole.
Testing of the RBD03 hole using more fit for purpose and accurate metering equipment resulted in consistent average gas flow rates of 147Mscf/d (147,000 standard cubic feet of gas per day) over a 16-day period.
Additionally, the now completed initial production test of the repurposed legacy gold exploration hole drilled in 1983 also confirmed methane content of 87.1% and helium making up a tasty 5.1%.
While methane (natural gas) will find ready buyers in gas hungry South Africa, the high helium content is the real prize as the rare, irreplaceable gas is used in high-tech applications such as semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines.
This accounts for why US spot prices for helium had ranged from US$1000 to US$2500 per thousand cubic feet in 2022.
It is also why D3 Energy (ASX:D3E) is keen to use the new test equipment on its recently drilled RBD10 well to see if comparable production rate increases are observed.
World class helium province
“Testing at RBD03 – a gold exploration borehole drilled in 1983 – has been an outstanding success and is a critical first step in defining what could be South Africa’s next onshore gas field,” managing director David Casey said.
“The fact that this borehole has potentially been producing helium and methane since it was drilled over 40 years ago augers well for similarly sustained gas production going forward.
“It is particularly encouraging that helium concentrations of 5% (consistent with other flowing boreholes in ER315) were measured from gas samples collected after a bit over a week of sustained gas production, further supporting this as a genuine world class helium province.
“At these rates and with very low drilling and completion costs, combined with record worldwide helium prices and natural gas shortages in South Africa, this is shaping up as an extremely exciting and robust first up opportunity right out of the gate.”
Forward plan
D3E has shut in the RBD03 hole to allow reservoir pressure to build up prior to commencing testing at RBD10 mid-week for a 14-day period.
It expects production at RBD10, which was initially measured at 126,000 standard cubic feet per day (Mscf/d), to see comparable production increases to those recorded at RBD03.
Once retesting of RBD10 is completed, the company will move to drill the RBD12 appraisal well.
Current testing forms part of a broader program that includes drilling and testing multiple boreholes within ER315, which is adjacent and similar to Renergen’s (ASX:RLT) Virginia gas project that has the first production right for helium and liquefied natural gas (LNG) in South Africa.
Results from this program will inform key decisions regarding the design of further testing programs, well interference and spacing, and planning for the submission of a Production Right application to the South African authorities.
This article was developed in collaboration with D3 Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
