Newly listed helium play D3 Energy (ASX:D3E) ended its first day of trade yesterday (13 May) in the green, advancing as much as 25% before edging back slightly.
The company hit an intra-day peak of $0.25 before closing at a $0.04 premium to its initial public offer price of $0.20.
That raised its market capitalisation from around $16 million on listing to over $19 million by the closing bell based on about 79.5 million shares on issue.
D3’s first news as a publicly listed company is the results of drilling at its namesake project in South Africa.
Helium concentrations from the two-well drilling program measured 5% in the RBD10 well and 5.1% in the RBD11 well.
These are the first wells to be drilled on the ER315 right and both were drilled down to a depth of 546m.
The D3 Project sits immediately east of Renergen’s (ASX:RLT) Virginia Gas Project, from which helium is currently being produced at an average concentration of 3.4%.
Drilling also confirmed methane as being the other major gas component at 85%, with RBD10 flowing gas at a stabilised rate of 126 million standard cubic feet over a 36-hour period.
The majority of helium supply comes as a by-product of natural gas production.
D3’s goal was to confirm the geological model and the fact that gas, both helium and methane, migration was a function of faulting and associated fractures below the base of the Karoo Formation, a Permian-aged large terrestrial and glacial basin in eastern South Africa.
The company believes initial drill results demonstrate a “potentially extensive” helium and associated methane system.
Managing Director David Casey says the results of the now completed initial drilling program has significantly increased D3’s understanding of the geological processes involved in gas migration and accumulation.
The D3 Project has a best estimate (2C) contingent helium resource of over 22 billion cubic feet.
Write to Angela East at Mining.com.au
Images: D3 Energy
