D3 Energy begins drilling two South African wells
- D3 Energy has commenced drilling operations at the NGT245 E well in South Africa as part of a two-well programme.
- Shares in the energy explorer moved following the announcement of ongoing appraisal activities in the ER315 permit area.
- The company is aiming to expand its helium and methane reserve base to support converting exploration rights into production rights.
D3 Energy (ASX:D3E) has spudded the first of two planned onshore exploration wells in South Africa's Free State.
Historical testing near the site flowed gas at 95 Mscfd with a 5.6% helium concentration.
"The spudding of our first well at Nooitgedacht is another step forward," said D3 Energy Managing Director and CEO David Casey.
The 43-kilometre step-out targets fractures in the Witwatersrand formation to gather updated gas concentration data.
Following the announcement, the D3 Energy share price was up at $0.355.
The company holds full ownership of the ER315 permit covering 811 square kilometres near existing gas infrastructure.
D3 Energy previously submitted a production right application for the region following reserve bookings completed last year.
