D3 Energy begins Nooitgedacht drilling to expand South African helium reserves

South African helium driller spuds first well in 43-kilometre reserve extension

D3 Energy has spudded the first of two wells aimed at extending its reserve base across a structural fault zone 43 kilometres north of its existing production right application area in South Africa’s Free State Province.

The ASX-listed explorer confirmed NGT245 E went to drill in the northwestern portion of its wholly owned ER315 permit at Nooitgedacht, with a second well planned once the first is completed. The campaign carries a budget of approximately A$200,000 for NGT245 E.

Nooitgedacht sits along the Homestead Fault, a major structural corridor within ER315. The company is drilling into the Witwatersrand formation, targeting faulting and associated fractures to assess reservoir deliverability and helium and methane concentrations.

Read also: D3 Energy begins Nooitgedacht drilling to expand South African helium reserves

Both wells are positioned near the historical Nooitgedacht Major borehole, which produced an average flow rate of 95,000 standard cubic feet per day during production testing in January 2025. That well recorded helium concentrations of 5.6% and methane at 83.2%.

D3 Energy already has reserves booked at its Bloemskraal area, around 43 kilometres to the south, supporting a production right application submitted in 2024. The company is now looking to replicate that process at Nooitgedacht and convert additional exploration acreage into production rights.

“The spudding of our first well at Nooitgedacht is another step forward in our methodical appraisal of ER315 as we look to build upon and extend the company’s ER315 reserve base some 40 kilometres to the north,” managing director David Casey said.

Should NGT245 E intersect gas, D3 Energy plans to run production testing to measure flow performance and collect data on well interference and spacing. The results will guide further development planning and inform potential additional production right applications to South African authorities.

The second well, NGT245 D, will be drilled after NGT245 E is completed. Production testing will follow any successful gas intersections, with results expected to strengthen the company’s technical dataset for reserve definition and permitting.

D3 Energy holds 479,409 acres across ER315, PR016 and ER386 in the Free State Province. ER315 has returned independently verified helium concentrations as high as 8%. The company has also acquired helium and hydrogen permits in South Australia’s Arckaringa Basin.

Helium produced from the permit area would target purity grades suitable for liquefaction and sale under long-term contracts or spot arrangements, though D3 Energy has not disclosed offtake terms or tolling agreements to date.