D3 Energy Q2 Report: Strong Progress, Major Milestone, and Strategic Expansion

D3 Energy reported strong Q2 progress with a major technical milestone and strategic expansion. The company achieved a maiden reserve certification for its ER315 helium and methane project in South Africa and secured a 32% increase in gas flow rates at the RBD03 well. D3 also expanded its portfolio through acquisitions in Australia's helium and hydrogen sector, acquiring permits in South Australia's Arckaringa Basin.

D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF) has reported robust progress in its quarterly activities, highlighting significant technical milestones and strategic expansion efforts. The company achieved a maiden reserve certification for its ER315 helium and methane project in South Africa, marking a critical step towards finalizing its Production Right Application. Additionally, D3 Energy secured a 32% increase in gas flow rates at the RBD03 well, validating its geological model. The company also expanded its portfolio by acquiring helium and hydrogen exploration permits in South Australia's Arckaringa Basin.

Technical Milestones and Reserve Certification

D3 Energy's ER315 project in South Africa received a maiden reserve certification from global energy consultancy Sproule ERCE. The certification includes 7.21 billion cubic feet (bcf) of 1P gas, 5.45 bcf of net methane, and 0.353 bcf of net helium. This certification is a pivotal achievement, as it provides the final documentation required for D3’s Production Right Application submission, which is on track to be lodged with South African authorities well ahead of schedule and under budget [1].

Well Test Results

During the quarter, D3 Energy completed a successful clean-out and retesting operation at its RBD03 well. The results confirmed a 32% increase in flow rates, with average gas flow reaching 194 Mscfd, up from 147 Mscfd in prior tests. This outcome supports the company’s geological model and reinforces the long-term potential of its South African assets [1].

Strategic Expansion

To diversify its asset base and tap into emerging opportunities in the Australian helium and hydrogen markets, D3 Energy has expanded its footprint beyond South Africa. The company acquired two highly prospective helium and hydrogen exploration permits in South Australia’s Arckaringa Basin (PEL 121 and PEL 122) [1].

Financial Highlights

D3 Energy reported a cash balance of about $5.3 million at the end of June 2025, which is expected to support ongoing exploration and application preparation activities. The company's key expenditures during the quarter were focused on Production Right Application preparation, exploration and testing activities, along with general administration costs. Notably, D3 Energy’s exploration and feasibility costs are tracking under budget, due to better-than-expected production results and reduced drilling costs [1].

Looking Ahead

D3 Energy is poised to submit its Production Right Application ahead of schedule as it continues working towards the development of its ER315 project and expanding its international footprint. The company holds significant contingent and prospective resources at its ER315 project, with 1C, 2C, and 3C recoverable gas resources certified at 329.44, 533.02, and 835.07 bcf, respectively. These extensive resources underpin D3’s plans for future development [1].

References

[1] https://www.proactiveinvestors.com/companies/news/1075514/d3-energy-reports-strong-q2-progress-expanding-footprint-and-hitting-technical-milestones-1075514.html