D3 Energy to begin well appraisal at South African helium play

Production testing of RBD03 target underway for helium and methane
D3E flags next well RBD12 important for production testing program
Drilling part of extended multi-borehole program

Special Report: Helium play D3 Energy has kicked off production testing for helium and methane at a historical borehole within its ER315 license in Free State, South Africa.

D3 Energy’s (ASX:D3E) RBD03 target is a legacy gold exploration borehole drilled within the area of license ER315 in 1982. Historical holes, including RBD03, struck free flowing gas, which have been continuing to flow at measurable rates since the early ‘80s.

The testing program at RBD03 will form part of an extended multi-borehole testing program, including the historical RBD01 borehole, in the coming months.

The extended testing and pressure monitoring program will enable critical decisions to be made on well interference and spacing, forming the basis for expediting a Production Right application to be submitted to the South African authorities in the near future.

Work at RBD03 is expected to take about two weeks, with an update to be provided in about a week.

“To undertake the testing, D3 Energy designed and manufactured in Australia, fit for purpose and accurate metering equipment to meet API and AGA standards, and had it shipped to South Africa. The current testing of RBD03 is expected to take about 2 weeks with an update to be provided in about 7 days,” the company said.

D3E’s permits are adjacent to Renergen’s (ASX:RLT) Virginia gas project, which has the first production right for helium and liquefied natural gas (LNG) in South Africa, of which ER315 shares many important geological features.

Renergen has an operational cryogenic helium and LNG plant just 20km to the west.

Recently, D3E returned world-class helium concentrations of 5% and 5.1% helium at RBD10 and RBD11 – drilled to confirm the geological model and gas migration as a function of faulting and associated fractures below the base of the Karoo formation.

Next drill rig contract ready for spinning

The helium and gas explorer has now executed a rig contract for the drilling of RBD12 – its next well at ER315.

Due to the proximity of the RBD12 location to the RBD03 well, the gas play says, drilling of RBD12 will commence once testwork at RBD03 has been finalised.

RBD12 will not only be an important well in the production testing program but will also “hopefully confirm the geological model that drilling into the high wall sequence and intersecting fractures below the base of the Karoo yields commercial gas (helium and methane) production rates”.

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.