D3 Energy Expands into Helium and Hydrogen Exploration in South Australia
Key Ideas
- D3 Energy Ltd acquires two helium and hydrogen exploration permits in South Australia's Arckaringa Basin, positioning itself in a region with clean energy potential and favorable geological similarities to successful gas discoveries.
- The acquisition diversifies D3 Energy's portfolio beyond South Africa, offering low-cost entry into a relatively underexplored but promising exploration corridor in South Australia.
- Two early-stage prospects, Hydrohelix and Cootanoorina, have been identified as drill-ready, with additional leads offering opportunities pending initial drilling success.
- The company plans to certify resources over the prospects, advance a joint venture partner process for exploration funding, and maintain focus on accelerating Production Right application in South Africa.
D3 Energy Ltd, listed on ASX and OTCQB, is broadening its global presence by acquiring two exploration permits in South Australia's Arckaringa Basin, known for its potential in helium and hydrogen. These permits, obtained through Unleash Energy Pty Ltd, cover 5,865 square kilometres near Coober Pedy and Oodnadatta. The region's geological similarities to the Amadeus Basin, where significant gas discoveries have been made, present an attractive opportunity for D3 Energy to tap into the emerging helium and hydrogen exploration hotspot.
The acquisition allows D3 Energy to diversify its portfolio beyond its flagship project in South Africa, emphasizing its multi-jurisdictional approach in the helium and hydrogen sector. With minimal work commitments and holding costs, the company aims to create shareholder value through low-cost exploration and potential partnerships for funding. The identified prospects, Hydrohelix and Cootanoorina, show promise with similarities to successful wells in the Amadeus Basin, making them prime candidates for further exploration.
The technical assessments conducted by D3 Energy highlight the prospectivity of the Arckaringa Basin, with salt structures acting as potential traps for helium and hydrogen accumulations. Despite the lack of sub-salt penetrations in the region to date, the company's evaluation work suggests significant potential for gas discoveries. The company's focus remains on accelerating the Production Right application in South Africa while moving forward with exploration activities in South Australia, setting the stage for future growth and success in the global helium and hydrogen market.
Topics
Utilities
Acquisition
Global Expansion
Exploration
Investment Opportunity
Portfolio Diversification
Geological Potential
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