D3 Energy joins South Australian helium and hydrogen push with Arckaringa Basin deal
D3 Energy (ASX: D3E) has become the latest company to join the hunt for high-value hydrogen and helium in South Australia.
On the back of Gold Hydrogen’s (ASX: GHY) world-class discoveries at Ramsay in South Australia, a number of companies from across the globe have sought to acquire exploration acreage in the state.
Earlier this week, dual-listed Thor Energy (ASX: THR) formally accepted three exploration licences to boost its search for the high-value gas sources.
Acquiring two permits
D3 has now brought its South African helium experience to South Australia with its acquisition of two exploration permits in the Arckaringa Basin, a region of increasing helium and hydrogen exploration activity.
The company is adding petroleum exploration licences PEL 121 and PEL 122 via the purchase of all the issued share capital in Unleash Energy.
The deal provides D3 with low-cost entry into the highly prospective licences, which have minimal work commitments and low ongoing holding costs, along with complementary portfolio diversification.
Drill-ready prospects
D3 Energy managing director David Casey said technical work conducted by the company had already identified relatively shallow near-term drill-ready prospects.
“This is an important next step on the back of early success in South Africa for D3 Energy to become a significant player in the helium sector across the globe.”
“The addition of new acreage in the emerging helium and hydrogen exploration hotspot of South Australia provides portfolio diversification with the potential to create significant shareholder value via low-cost exploration work supporting a farm-out process with external funding from industry partners.”
Independent assessment
D3 is now planning to obtain an independent assessment of helium and hydrogen resources in the permits and has commenced the process of finding a joint venture partner to secure project funding.
Mr Casey confirmed the company’s ER 315 project in South Africa remains its main focus.
“Our work in South Africa sees us positioned to notably accelerate lodgement of a production right application ahead of schedule and significantly under budget.”