D3 lists on the ASX after raising $10m via IPO
Exploration right ER315 has best estimate contingent resources of 474.6Bcf gas and 22.4Bcf helium
Company had already completed an initial two wells before the IPO
Special Report: D3 Energy has emerged as the newest energy explorer on the ASX after successfully completing a $10m initial public offering on the merits of its namesake natural gas and helium project in South Africa.
The company holds 100% in Motuoane Energy, which owns exploration right ER315, exploration right application ERA341, along with technical co-operation permits TCP235 and TCP240 in an energy scarce area within the Free State province.
These areas are immediately east of Renergen’s (ASX:RLT) Virginia gas field, which produces liquefied natural gas and helium for sale.
The Virginia Fault, which has yielded large volumes of methane (natural gas) in nearby gold and gas projects, is present within ER315 and constitutes a major area to be explored.
ER315 also hosts the Ventersberg Fault that requires further investigation into its potential as a gas target while a major gas yielding borehole, directly in or in very close proximity to the Homestead fault occurs on the farm Nooitgedacht in the north.
The permit has best estimate contingent resources of 474.64 billion cubic feet (Bcf) of natural gas and 22.445Bcf of recoverable helium.
Map of D3 Energy’s tenements. Pic: D3 Energy
Experienced management team
Besides the potential of ER315, D3 also features a strong leadership team.
Managing director and CEO David Casey has over 30 years’ experience in the oil and gas sector and was the former managing director of Eastern Star Gas, where he was instrumental in the appraisal, development and commercialisation of the Narrabri gas project until the company was acquired by Santos for $924m.
Non-executive chairman Greg Columbus has 15 years’ experience as managing director of privately-owned Clarke Energy, a multinational that specialised in the sale, engineering, installation, and maintenance of power plants that utilise gas compressors and gas engines.
He was also the chairman of Warrego Energy, which was acquired by Gina Rinehart’s Hancock Energy in 2023 for circa $440m.
Executive director Matt Worner has extensive experience in the oil and gas sector and has worked within legal, commercial and governance positions with various ASX listed companies over a period of close to 20 years.
Gas exploration
Proceeds from the IPO of 50 million shares priced at 20c will be used to fund a continuation of the first phase of exploration at the D3 project.
At ER315, this will include aeromagnetic and seismic survey work as well as the drilling of exploration wells.
For TCP235 and TCP240, D3 will carry out desktop and environmental studies.
“The company is pleased to complete the listing process and commence trading on the ASX. We are grateful for the shareholder support that has been demonstrated through an oversubscribed IPO. The team is now focused on deploying funds raised from the IPO on its highly prospective natural gas and helium project in South Africa,” Casey said.
“The team has spent the last few years acquiring and completing initial exploration work on its assets and on ER315 in particular, where we have just completed an initial program of two wells and where we look forward to pursuing further exploration and appraisal work in the near term.
“Producing boreholes in ER315 are flowing methane along with exceptional helium concentrations, providing us with a significant opportunity to continue to successfully explore, develop and commercialise a world class helium asset in what is a constrained helium market and a host nation in need of a gas supply to solve power generation issues and aid its energy transition.”
This article was developed in collaboration with D3 Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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