D3 Energy secures first reserve certification for ER315, unlocking helium and methane production potential and advancing onshore licensing in South Africa.
Helium Price TrendD3 Energy Limited has achieved a major milestone with the announcement of its inaugural reserves certification for its 100%-owned block ER315, located in South Africa's Free State province. This certification marks a pivotal development in the company鈥檚 strategy to secure a production right over this prospective area.
The maiden reserves assessment has been independently conducted by global consultancy Sproule ERCE, and it forms a core component of the required documentation for D3 Energy鈥檚 upcoming Production Right application. The reserves certification follows a series of highly promising drilling and production tests on ER315, which have delivered results surpassing initial expectations.
Casey, Managing Director of D3 Energy, expressed enthusiasm about the development, stating, 鈥淭his independent reserves certification at ER315 is a significant achievement for D3 Energy. It is especially noteworthy given that it covers only a very small portion of our wider portfolio. The outcomes of drilling and production testing have exceeded our projections, allowing for this earlier and larger-than-expected reserves certification."
He added that this development is "essentially the final piece required to proceed with the Production Right application, which could become only the second onshore production license ever granted in South Africa." The reserves currently certified only apply to a section of the initial production right application area, which is soon to be submitted. Notably, this segment represents only a fraction of D3 Energy鈥檚 extensive landholding and the multiple fault zones that the company鈥檚 geological models have identified as critical conduits for helium and natural gas production.
From Casey鈥檚 personal viewpoint, ER315 represents a 鈥渙nce-in-a-career asset,鈥� highlighting the substantial value already uncovered through early exploration efforts that were completed significantly ahead of both schedule and budget.
Certified Methane and Helium Reserves
Sproule ERCE's assessment estimates the following reserve volumes for ER315:
鈥�听听听听听听听听听听听听 Methane Reserves
o听听听听听听听听听听听听 1P (Proven): 5.5 billion cubic feet (bcf)
o听听听听听听听听听听听听 2P (Proven + Probable): 10.9 bcf
o听听听听听听听听听听听听 3P (Proven + Probable + Possible): 17.4 bcf
鈥�听听听听听听听听听听听听 Helium Reserves
o听听听听听听听听听听听听 1P: 0.353 bcf
o听听听听听听听听听听听听 2P: 0.706 bcf
o听听听听听听听听听听听听 3P: 1.123 bcf
These reserve volumes have been further classified into:
鈥�听听听听听听听听听听听听 Proven Developed Non-Producing (PDNP): Includes reserves behind-pipe or shut-in.
鈥�听听听听听听听听听听听听 Proven Undeveloped (PUD): Expected recovery from new drilling locations.
The current development plan under the Production Right application includes 16 wells in total鈥�3 categorized under PDNP and 13 under PUD鈥攆ocused on the Virginia fault line on the western portion of the application area.
Meanwhile, reserves from the Ventersburg fault line on the eastern section have not been included in this certification and are still considered contingent resources pending further drilling and testing.
The maiden reserve certification effectively upgrades part of the project鈥檚 contingent resources into formal reserves, strengthening D3 Energy鈥檚 position as it finalizes its Production Right application. The company remains on track to submit the application ahead of schedule and within budget. Importantly, the certified reserves only apply to a limited area within ER315, reinforcing D3 Energy鈥檚 geological model and indicating significant untapped potential across the broader acreage and mapped fault structures.
