D3 Energy's RBD03 Well Achieves Remarkable Gas Flow Rates
D3E (D3E) Share Update July 2024 Wednesday 31st
D3 Energy Reports Outstanding Results from Initial Production Testing at RBD03
D3 Energy Limited (ASX:D3E) has announced impressive results from its initial production testing at the RBD03 well in the Free State, South Africa, showcasing a significant increase in gas flow rates.
Instant Summary:
- RBD03 achieved a stabilised flow rate of 149 Mscfd over a 7-day period.
- The new flow rate is nearly double the previous measurements.
- D3 Energy plans to re-test the RBD10 well with the new equipment.
- Gas samples will be analyzed for helium and methane composition.
Initial Production Testing Results
D3 Energy Limited (ASX:D3E) has reported outstanding results from its initial production testing at the RBD03 well, located in the Free State, South Africa. The well achieved a stabilised flow rate of 149 Mscfd over a 7-day period, almost doubling the previous flow rate measured with older testing equipment.
The company deployed new, more accurate metering equipment designed in Australia to meet API and AGA standards. This equipment was first used at RBD03, a legacy gold exploration borehole drilled in 1983. The total gas produced during the initial testing period was 1,045 Mscf.
Future Plans and Expectations
Following the successful test at RBD03, D3 Energy plans to re-test the recently drilled RBD10 well using the new equipment. The company is hopeful that the new equipment will yield increased flow rates at RBD10, similar to those at RBD03. As of the last test, RBD10 flowed at an average stabilised rate of 126 Mscfd over 36 hours.
Gas samples from RBD03 will be collected and analyzed towards the end of the extended production test. The helium and methane composition is expected to be in line with previous measurements at RBD10 and RBD11, which showed around 5% helium and 85% methane.
Significance of the Results
The results from the RBD03 testing are significant as they demonstrate a nearly two-fold increase in the stabilised flow rate compared to previous equipment. This indicates the unique properties of the reservoir in the area and the effectiveness of the new metering equipment. The current testing regime is a critical part of D3 Energy's broader program, which includes drilling and testing multiple boreholes within ER315. The results will inform key decisions regarding well interference, spacing, and planning for a Production Right application to South African authorities.
The impressive results from the RBD03 well are likely to have a positive impact on D3 Energy's stock. The significant increase in gas flow rates and the potential for similar results at other wells in the area could boost investor confidence and drive up the company's stock price. Additionally, the successful deployment of new metering equipment enhances the company's reputation for technological innovation and accuracy in measurements.
Investor Reaction:
Analysts are expected to react positively to the news, highlighting the nearly doubled flow rates and the potential for increased production at other wells. The successful testing at RBD03 and the planned re-testing of RBD10 with the new equipment could lead to upward revisions in production forecasts and stock price targets.
Conclusion:
Investors should keep a close eye on D3 Energy's ongoing testing and production efforts in the Free State, South Africa. The company's recent success at RBD03 is a promising indicator of future potential. Subscribe to our newsletter for regular updates on D3 Energy and other stock market news.