Gas and helium developer D3 Energy jumps ahead with 52pc increase in RBD10 gas flows

D3 Energy’s new equipment measured RBD10 gas flow at 191Mscf/d, up 52% from previously recorded rates
Gas flow includes world-class helium concentrations of 4.7% and 87.7% methane
Company now getting ready to drill the RBD12 production well

Special Report: D3 Energy’s more fit for purpose and accurate metering equipment has lived up to its billing, measuring gas flow rates averaging 191,000 standard cubic feet per day at its RBD10 production well.

While not quite the near doubling of gas flow rates that were observed in the RBD03 hole, the flow rates noted over a 14-day period at RBD10 still represents a very significant 52% increase over the previous measured rate of 126,000 standard cubic feet per day (Mscf/d).

Equally important for D3 Energy (ASX:D3E) is RBD10 delivering world-class helium concentrations of 4.7% after seven days of sustained production with methane (natural gas) making up 87.7% of the gas stream.

Helium has gone for between US$1000 and US$2500 per thousand cubic feet on the US spot market as it has irreplaceable uses 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.

Previous use of the equipment, which was designed and manufactured in Australia to meet API and AGA standards, had resulted in RBD03 – a repurposed legacy gold exploration hole drilled in 1983 – flowing at an average measured gas flow rate of 147Mscf/d over a 16-day period, nearly double the rate measured using the previous equipment.

RBD10 has now been shut-in to allow reservoir pressure to build prior to further testing being conducted later this year.

“The impressive results from RBD10 continue the trend of strong performance across our exploration program at ER315. The improvement and consistency of these flow rates highlights the unique properties of the reservoir and reinforces our strategy of methodical exploration and appraisal across our asset base,” managing director David Casey said.

“We are particularly pleased with the success of our newly deployed testing equipment, which has provided us with accurate and reliable measurements. These results further position D3 Energy as a leading player in the helium market and the stage is now set for upcoming drilling at RBD12.”

Drilling RBD12

D3E is now preparing to drill RBD12, which is close to RBD03 and expected to cost just $200,000 to drill and complete.

The well is being drilled as a future production well and will be tested on successful intersection of gas to further the understanding of reservoir deliverability.

Samples will also be collected to determine the helium and methane concentrations.

The company noted that wells within its ER315 tenement in South Africa’s Free State appear to flow naturally with minimal decline and without artificial lift or pumping, providing very low to negligible operating costs throughout the extensive life of the well.

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.