D3 Energy Begins Drilling First Well at Nooitgedacht, Advancing Helium Appraisal in South Africa

NGT245 E Well Spudded at Nooitgedacht Targeting Witwatersrand Formation

D3 Energy has commenced drilling the NGT245 E well at Nooitgedacht, starting a two-well appraisal program within the ER315 permit in South Africa’s Free State Province. Situated about 43 kilometres north of Bloemskraal, the well is strategically placed along the Homestead Fault within the Virginia Fault structural corridor, which hosts the company’s certified reserves and contingent resources. This location supports the company’s Production Right application lodged with South African authorities.

The drilling is being conducted by the contractor responsible for D3 Energy’s initial successful drilling campaign, ensuring operational continuity and expertise. The second well, NGT245 D, is also planned as part of this appraisal initiative. Both wells are near the historically tested Nooitgedacht Major borehole, which demonstrated strong prospectivity when production tested in January 2025, flowing at an average rate of 95 Mscfd with helium concentrations of 5.6% and methane at 83.2%.

Reservoir Deliverability and Gas Concentration Testing Program

The NGT245 E well aims to target faulting and fractures within the Witwatersrand formation to evaluate reservoir deliverability. The program will collect critical data on helium and methane concentrations to enhance understanding of the resource base across ER315. Upon successful gas intersection, production testing will provide insights into development potential and inform operational decisions on well interference and spacing.

Data from production testing will underpin future drilling strategies and additional Production Right applications to South African regulators. This appraisal approach aligns with D3 Energy’s strategy to expand reserves and convert exploration rights into production rights. Helium concentrations up to 8% independently verified within ER315 highlight Nooitgedacht as a highly prospective helium province globally.

Drilling Budget and Financial Commitment for NGT245 E

D3 Energy has allocated approximately A$200,000 for drilling and completing the NGT245 E well, reflecting a measured approach to appraisal drilling. This budget covers well construction, completion, and initial formation characterization necessary for production testing. Selecting an experienced contractor enhances confidence in budget management and technical execution.

This capital deployment is part of the broader investment in the ER315 permit, which currently supports a Production Right application under review by Petroleum Agency SA. The company’s disciplined capital allocation focuses on expanding the reserve base and securing regulatory approvals to build shareholder value.

Progress on Production Right Application and Regulatory Pathway

D3 Energy’s Production Right application for ER315 was accepted for processing by Petroleum Agency SA last year, marking a key milestone toward commercial development. The application covers 15% of ER315 and about 9% of the company’s total exploration acreage. The remaining land, including the contiguous ER386 permit, forms part of the broader appraisal and development pipeline. The NGT245 E drilling and production testing will strengthen the technical case for current and future Production Right applications.

Managing Director and CEO David Casey stated that spudding the first well at Nooitgedacht advances the company’s methodical appraisal of ER315, expanding reserves northward and supporting conversion of exploration rights to production rights. The drilling program builds the technical dataset essential for permit development and regulatory approval, reinforcing the company’s South African development pathway.

Historical Borehole Performance Highlights Nooitgedacht Prospectivity

The Nooitgedacht Major borehole provides a robust technical foundation for the current drilling. Tested in January 2025, it flowed at an average 95 Mscfd with helium at 5.6% and methane at 83.2%, demonstrating the Witwatersrand formation’s commercial gas potential. The proximity of NGT245 E and NGT245 D wells to this borehole allows direct comparison to assess spatial variability in gas quality and reservoir deliverability.

While the 5.6% helium concentration is slightly below the independently verified maximum of 8% in ER315, it remains attractive in the global helium market context. Combined with 83.2% methane, the gas composition supports commercial development prospects within the company’s portfolio.

Expanded Land Holdings and South African Operations

D3 Energy controls a substantial 479,409-acre land position in South Africa’s Free State Province, including the flagship ER315 permit, production right PR016, exploration right applications ER386, ER391, ER392, ER393, and Technical Cooperation Permit TCP273. ER315 has delivered helium concentrations up to 8% and is the subject of the current Production Right application under review.

The contiguous ER386 permit lies within the same Virginia Fault structural corridor hosting the company’s certified reserves and contingent resources, enabling operational synergies and infrastructure sharing. This extensive land portfolio positions D3 Energy as a major player in South African petroleum exploration with multiple opportunities to grow reserves and convert exploration rights into production rights.

Australian Expansion with Helium and Hydrogen Permits in Arckaringa Basin

In addition to South African operations, D3 Energy has expanded internationally by acquiring helium and hydrogen permits in Australia’s Arckaringa Basin. This diversification broadens exposure to critical gases while maintaining focus on advancing ER315 development. The Arckaringa Basin is an emerging helium exploration frontier, positioning the company to capitalize on growing global helium demand.

This dual-geographic strategy reflects the company’s alignment with global energy transition trends, emphasizing helium supply security and hydrogen’s role as an energy vector. The Australian permits offer optionality for long-term growth alongside near-term South African development priorities.

Management Insights on Strategic Development

CEO David Casey described the NGT245 E well spudding as a significant step in D3 Energy’s systematic ER315 appraisal. The program aims to extend the reserve base northward and support converting exploration rights to production rights through disciplined, data-driven development. Casey emphasized building the technical foundation necessary for regulatory approvals and informed capital allocation.

He highlighted ER315’s status as one of the world’s most compelling helium provinces and framed the ongoing drilling as a continuation of the company’s pathway toward production. The acceptance of the Production Right application by Petroleum Agency SA contextualizes the drilling as part of a broader development strategy focused on technical and regulatory milestones.

Upcoming Milestones and Investor Watchpoints

Investors will monitor the completion of NGT245 E drilling and production testing, which will provide vital data on reservoir deliverability, helium and methane distribution, and inform well spacing and interference strategies. The drilling and testing of the second well, NGT245 D, will also be a key milestone to evaluate spatial variability in reservoir performance.

The regulatory progress of the current Production Right application remains critical, with approval representing a major de-risking event. Additional Production Right submissions informed by appraisal results will signal advancement toward commercial operations. Market participants may also track updates on Arckaringa Basin activities and the status of South African exploration right applications ER391, ER392, and ER393.