D3 Energy Ltd has had further success at the ER315 Project in South Africa upon completing production testing at Nooitgedacht Major with gas flowing at an average flow rate of 95 Mscfd for a 14-day period.
Providing the company with further confidence from the legacy borehole in the northern area of ER315 were the world-class helium concentrations of 5.6% and methane at 83.2%.
These results further confirm the significant potential of the northern area of ER315 as another production province for helium and natural gas.
Incredible potential
"This is yet another outstanding result from a legacy borehole drilled close to 35 years ago," D3 Energy's managing director and CEO David Casey said.
"The fact that we continue to identify and are able to test boreholes that are still flowing gas with high helium concentrations to this day, highlights the incredible potential of our broader South African portfolio.”
The latest results, combined with previous testing successes in the southern region of ER315, continue to reinforce the exceptional resource and production potential of the company’s flagship asset.
Regional map showing Nooitgedacht Major and Bloemskraal locations in ER315.
Shallow drilling depths
Significantly the northern area of ER315, including the Nooitgedacht Major borehole, benefits from shallower drilling depths, and this is expected to reduce development costs and enhance the economic viability of future operations.
"We now have excellent production results from boreholes 40 kilometres apart and depths ranging from 200 metres to 600 metres, making this one of the lower, if not lowest cost pure helium plays anywhere,” Casey said.
Data collected from the production testing will play a crucial role in optimizing well spacing and planning for subsequent exploration and appraisal activities.
The completion of testing at Nooitgedacht Major marks another important step in D3 Energy’s methodical approach to unlocking the full potential of ER315 and the company’s goal of delivering critical resources to local and international markets.
Investors have also welcomed the results with shares trading 5% higher in early ASX trading to $0.084.