D3 Energy Initiates Production Testing at Nooitgedacht Major
D3E (D3E) Share Update January 2025 Monday 6th
D3 Energy Begins Production Testing at Nooitgedacht Major
D3 Energy Limited (ASX:D3E) has announced the commencement of production testing at the Nooitgedacht Major borehole in South Africa, marking a significant step in their exploration efforts.
Instant Summary:
- Production testing begins at Nooitgedacht Major, a legacy borehole.
- Testing follows successful multi-borehole tests at Bloemskraal in 2024.
- Testing expected to last 14 days, with no interference testing planned.
- Plans to drill a new well, Erfenis 1, for future interference testing.
- Testing aims to assess gas prospectivity in the northern area of ER315.
Testing Details
D3 Energy Limited has commenced production testing at Nooitgedacht Major, a legacy gold exploration borehole located in the northern area of ER315 in the Free State, South Africa. Originally drilled in 1990, Nooitgedacht Major has been a source of flowing gas for decades.
The decision to begin testing follows a successful extended multi-borehole testing program conducted at Bloemskraal during 2024. Situated approximately 43 km north of Bloemskraal, Nooitgedacht Major is strategically positioned along the Homestead Fault, which traverses the northern section of ER315.
Testing Objectives and Future Plans
The production testing at Nooitgedacht Major is expected to last around 14 days. Notably, no interference testing will be conducted due to the absence of nearby offset wells to monitor pressure changes. However, D3 Energy has plans to drill a new well, Erfenis 1, near Nooitgedacht Major to facilitate future interference testing.
The primary goal of this testing program is to assess the gas prospectivity of the northern area of ER315. This will enhance the company's understanding of gas migration processes across the broader permit area and potentially delineate another production fairway.
The commencement of production testing at Nooitgedacht Major is a positive development for D3 Energy, as it could lead to increased resource estimates and potential production capabilities. Successful results may bolster investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to view this development as a strategic move by D3 Energy to expand their resource base. The absence of interference testing might raise questions, but the planned drilling of Erfenis 1 suggests a long-term commitment to thorough exploration.
Conclusion:
Investors should keep an eye on the results of the Nooitgedacht Major testing, as they could influence D3 Energy's future exploration strategies and market position. The company's ongoing efforts in the Free State Province highlight their role in the global energy transition.