D3 Energy's Successful IPO and Promising Helium Exploration Results
D3E (D3E) Share Update July 2024 Tuesday 30th
D3 Energy Reports Successful IPO and Promising Helium Exploration Results
D3 Energy Limited (ASX: D3E) has successfully completed its initial public offering (IPO) and announced promising results from its first two exploration wells in South Africa.
Instant Summary:
- D3 Energy raised $10 million through its IPO.
- First two exploration wells, RBD10 and RBD11, show world-class helium concentrations.
- RBD10 flowed gas at a stabilized rate of 126 Mscfd over 36 hours.
- RBD12 drilling contract executed, with activities expected to start soon.
- Company holds significant Contingent and Prospective Resources.
IPO Success
D3 Energy Limited commenced trading on the Australian Securities Exchange (ASX) on 13 May 2024, following a highly successful initial public offering (IPO) that raised $10 million through the issuance of 50,000,000 shares at $0.20 per share. This strong support for the IPO is a testament to the company's promising helium and natural gas assets and its experienced management team.
Exploration Activities
In conjunction with its ASX listing, D3 Energy announced the results of its first two exploration wells at ER315 in the Free State, South Africa. The wells, RBD10 and RBD11, recorded world-class helium concentrations of 5.0% and 5.1%, respectively, with methane making up 85% of the gas composition.
RBD10 flowed gas at a stabilized rate of 126 Mscfd over a 36-hour period with no evidence of decline, while RBD11, despite lower flow rates, still showed significant helium concentrations. Both wells were drilled on time and within budget, validating the company's geological model and confirming that gas migration is influenced by faulting and fractures below the Karoo formation.
Future Drilling Plans
Building on the success of RBD10 and RBD11, D3 Energy has executed a rig contract for drilling its next well, RBD12. Located to the west of the Virginia Fault and near the historical borehole RBD03, which has been flowing methane and helium since 1983, RBD12 is expected to commence drilling shortly. The well is budgeted to cost around AU$200K, demonstrating the low-cost nature of D3 Energy's South African assets.
Resource Estimates
D3 Energy holds significant Contingent and Prospective Resources at ER315. The Contingent Resource includes recoverable methane and helium, with estimates of 474.64 BCF of methane and 22.44 BCF of helium in the 2C category. The Prospective Resource estimates include 573.36 BCF of methane and 27.11 BCF of helium in the 2U category. These resources highlight the potential for future development and production.
The successful IPO and promising exploration results are likely to positively impact D3 Energy's stock price. The high helium concentrations and stable gas flow rates from the initial wells provide strong validation of the company's assets and geological model. Investors may view these developments as a sign of the company's potential for future growth and profitability.
Investor Reaction:
Analysts are likely to react positively to D3 Energy's successful IPO and promising exploration results. The high helium concentrations and stable flow rates are encouraging, and the company's ability to complete projects on time and within budget demonstrates strong operational capabilities. However, investors will be closely watching the results of the upcoming RBD12 drilling to further assess the company's potential.
Conclusion:
Investors should keep an eye on D3 Energy's progress as it continues its exploration and development activities. The company's successful IPO and promising initial exploration results position it well for future growth. Subscribing to updates and monitoring the company's announcements will be crucial for staying informed about potential investment opportunities.