D3 Energy Ltd (ASX:D3E, OTCQX:DNRGF) has spudded the second well in its two-hole drilling program at the Nooitgedacht area in South Africa, building on an encouraging result from the first well, which intersected the targeted gas zone and flowed gas to surface.
NGT245 D, which is situated in D3E’s 100%-owned ER315 permit in the Free State Province, was spudded on 30 July, approximately 1 week from commencement of drilling at the initial well NGT245 E, demonstrating the efficient and cost-effective nature of drilling operations. The well had reached a depth of 80 metres, with surface casing installed, and drilling toward the target formations was expected to continue this week.
Nooitgedacht location within ER315.
NGT245 D is budgeted to cost about A$200,000 to drill and complete. Successful gas intersection would be followed by production testing to assess deliverability and support decisions on well spacing, interference and future Production Right applications.
First well intersects target gas zone
The first well in the program, NGT245 E, was completed to a total depth of 363 metres on time and within budget, with no safety incidents reported.
The well intersected the targeted gas-bearing fracture zone and flowed gas to surface before the rig moved to the NGT245 D location.
Logging has begun, while further evaluation and testing will take place after intermediate casing is installed following completion of the second well.
D3 Energy managing director and CEO David Casey said the rapid start of the second well highlighted the low-cost and efficient nature of the company’s drilling operations.
“It is also incredibly pleasing to have successfully intersected the targeted gas-bearing fracture zones as planned and is a very good first step as we look to build upon and extend the company’s ER315 reserve base 40 kilometres to the north of our existing Production Right application area,” he said.
Program targets helium and methane potential
The Nooitgedacht wells are targeting faults and associated fractures within the Ventersdorp and Witwatersrand formations.
Testing is designed to provide additional information on reservoir deliverability and the concentration of helium and methane.
D3 Energy also plans to begin a 2D seismic program at Nooitgedacht in the coming weeks to improve its geological understanding of the area.
The prospect lies around 43 kilometres north of Bloemskraal, where the company has already booked reserves supporting a Production Right application, and sits along the Homestead Fault in the northern part of ER315.