D3 Energy picks up new technical permit next to flagship Free State helium ground

D3 Energy Ltd (ASX:D3E, OTCQB:DNRGF) has been granted a new Technical Cooperation Permit (TCP273) in South Africa’s Free State Province, expanding its position in what it describes as a world-class helium province.

The newly awarded TCP273 sits adjacent to the company’s existing exploration holdings and application areas, including its flagship Exploration Right (ER315). D3 has already applied for an initial Production Right over part of the ER315 area.

TCP273 covers about 82,777 acres (around 33,500 hectares), lifting D3’s total granted and applied-for footprint in the region to 478,699 acres (about 193,700 hectares).

Regional map showing D3 Energy acreage position.

“The award of TCP273 continues D3 Energy’s strategy of securing high-value helium and natural gas acreage along proven structural zones within the Free State,” D3E managing director and CEO David Casey said.

“This is the culmination of extensive geological modelling based on proprietary in-house algorithms and adds meaningful exploration upside strengthening our position as a leading helium developer and explorer. It also builds on the momentum we’re generating across the portfolio, including the commencement of FEED work for PR016, and provides the opportunity to further advance our understanding of this highly prospective region.”

TCP273 lies along the same prospective structural trends that host D3E’s existing discoveries and follows appraisal work at ER315. At ER315, D3 previously reported helium concentrations of up to 6.2% recovered from shallow boreholes at sustained rates.

While a Technical Cooperation Permit does not provide the same rights as a full Exploration Right, it can provide a low-cost pathway to assess geological potential and define targets before committing to more extensive field programs.

What happens next

TCP273 is granted for a 1-year period and is expected to involve desktop-based geological and geophysical studies.

Once those studies are completed, D3E expects to apply for a full Exploration Right (ER) over the TCP273 area.

The company pointed to its recent progression strategy as precedent, noting it has used this TCP-to-ER pathway previously at ER386, where an application for grant of an Exploration Right is currently being progressed by South African regulatory authorities.

Upside optionality

If D3E elects to apply for, and later secures, an Exploration Right over TCP273, it believes the additional ground could help expand its existing contingent and prospective inventory of helium and methane resources, and add further exploration optionality around the ER315 hub.

In the near term, investors will likely be watching for the outcomes of the desktop studies on TCP273, any updates on the ER386 regulatory process, and progress on the Production Right application covering part of ER315, where D3 Energy will be undertaking further exploration and appraisal activities this year.