D3 Energy Limited - Initial Production Testing at RBD03
D3E (D3E) Share Update August 2024 Sunday 11th
D3 Energy Announces Successful Initial Production Testing at RBD03
D3 Energy Limited (ASX: D3E) has announced the successful completion of initial production testing at its RBD03 borehole, located in the Free State, South Africa. The results indicate promising gas flow rates and world-class helium concentrations, marking a significant milestone for the company.
Instant Summary:
- RBD03 achieved an average gas flow rate of 147 Mscfd over a 16-day period.
- The flow rate is nearly double compared to previous measurements.
- Helium concentrations of 5.1% were recorded after 7 days of production.
- New equipment will be used to test the recently drilled RBD10 borehole.
Outstanding RBD03 Flow Rates Confirmed
D3 Energy Limited (ASX: D3E) has completed initial production testing at its RBD03 borehole in the Free State, South Africa. The borehole, originally drilled in 1983 for gold exploration, has shown an average gas flow rate of 147 Mscfd over a 16-day period. This rate is nearly double the previous measurements taken with older equipment.
The total gas produced during this period was 2,346 Mscf. Gas samples analyzed by a SANAS accredited laboratory in South Africa revealed helium concentrations of 5.1% and methane concentrations of 87.1%. These results are consistent with other boreholes in the ER315 area, further supporting the potential of this site as a world-class helium province.
New Testing Equipment at RBD10
Following the successful testing at RBD03, the well has been shut in to allow the reservoir pressure to build back up. The company plans to use the new, more accurate metering equipment to test the recently drilled RBD10 borehole. Previous testing at RBD10 showed an average stabilized flow rate of 126 Mscfd over 36 hours. D3 Energy is hopeful that the new equipment will yield similar improvements in flow rates as seen at RBD03.
The current testing regime is part of a broader program that includes drilling and testing multiple boreholes within ER315. The results 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 South African authorities.
The successful initial production testing at RBD03 is a significant milestone for D3 Energy. The nearly doubled flow rates and high helium concentrations are promising indicators of the site's potential. This could positively impact the company's stock as investors gain confidence in the project's viability. The successful application of new testing equipment could also lead to similar improvements in other boreholes, further boosting investor sentiment.
Investor Reaction:
Analysts are likely to react positively to this announcement, given the significant improvements in gas flow rates and helium concentrations. The use of new, more accurate equipment has proven effective, and the potential for similar results at other boreholes is encouraging. However, investors will be keen to see the results of further testing and the company's plans for commercial production.
Conclusion:
Investors should keep a close eye on the upcoming tests at RBD10 and other boreholes within ER315. The successful initial production testing at RBD03 is a promising start, but further results will be crucial in determining the long-term potential of this project. D3 Energy's strategic approach and continued success in testing will be key factors in maintaining investor confidence.