D3 Energy Ltd (ASX:D3E, OTCQX:DNRGF) will undertake remedial cementing work at its Nooitgedacht Project in South Africa after downhole logging confirmed gas-bearing zones in both the NGT245 D and NGT245 E wells, while identifying deeper water inflows that are currently restricting gas flow.
Analysis of recent geophysical logging showed water from deeper production zones had risen above the gas-bearing intervals in both wells. With reservoir pressure at the location extremely low, the elevated water level is inhibiting gas flow.
Latest technology downhole camera logging was able to identify the gas zones prior to the water level rising and inhibiting the flow as seen via this video link.
D3 Energy plans to isolate the deeper water-producing zones from the gas intervals using remedial cementing, with work expected to begin next week at both wells.
The objective is to restore gas flow to the levels observed during drilling. Downhole camera logging carried out before the water level rose also recorded gas bubbling through the water column, providing further evidence of gas within the targeted zones.
Managing director and CEO David Casey said logging had helped explain why gas flow subsided during completion operations.
"Encouragingly, however, logging has confirmed that this is in large part due to water rising from a zone below to above the gas bearing zone," Casey said.
"While it is anticipated that remedial work should resolve this, it is nonetheless incredibly encouraging that both wells intersected gas bearing zones in what is our first drilling operation at Nooitgedacht."
NGT245 D and NGT245 E are targeting faults and associated fractures within the Ventersdorp and Witwatersrand formations, with the drilling designed to assess reservoir deliverability and gather further information on helium and methane concentrations.
Nooitgedacht lies within D3 Energy's 100%-owned ER315 permit in South Africa's Free State and is around 40 kilometres from the company's Production Right application area.
The drilling represents D3 Energy's first campaign at Nooitgedacht and provides additional information on the broader potential of the ER315 acreage.