D3 Energy positioned to leverage ongoing helium market strength

Core Insights - D3 Energy Ltd has confirmed significant helium and natural gas potential in South Africa, with demand for these commodities outstripping supply [1][2] - The company aims to unlock the resource potential of its flagship ER315 asset, which is positioned to address growing global helium demand and support South Africa's energy transition [2][18] Helium Market Dynamics - D3 Energy's ER315 project features world-class helium concentrations ranging from 5-9%, making it a globally significant helium project amid a supply shortage [2][12] - Helium prices have increased by 18% annually over the past five years, with demand expected to grow at 5-6% per year, nearly doubling from 6 billion cubic feet (BCF) to over 8 BCF by 2030 [4][6] - The helium market is anticipated to remain tight due to geopolitical risks and concentrated production in Qatar and Russia, with potential delays in large projects affecting supply [7][8] Natural Gas Opportunity - D3 Energy is emerging as a key provider of natural gas in South Africa, addressing energy delivery challenges and supporting the country's sustainable energy transition [3][11] - South Africa currently faces significant energy shortages and relies on imported gas, with growing shortfalls expected from 2024 [10] - D3 Energy's strategic partnership with NOVO Energy supports the commercialization of its natural gas resources, with discussions on initial offtake agreements underway [16] Project Development and Results - The ER315 project spans 442,750 acres and has delineated significant contingent and prospective resources for both helium and natural gas [12] - Initial production testing at ER315 has shown promising results, with gas flows of 191 Mscfd from borehole RBD10 and 147 Mscfd from RBD03, confirming the project's potential [14][15] - The company has consistently delivered strong drilling and production testing results, providing exposure to critical commodities essential for high-tech industries and energy security [17]