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- Renergen (RLT) discovers helium with a concentration of 1.1 per cent at its Evander Exploration Rights prospect in South Africa
- The well was first drilled years ago and had no surface infrastructure, resulting in it becoming waterlogged
- Despite this set back, the gas was able to overcome the water pressure, producing 5000 standard cubic feet per day, which the company says demonstrates the potential for exploration
- Additionally, the company is focussed on targeting ongoing exploration at the Virginia Gas Project through its drill program of a total of six wells
- Renergen shares last traded at $1.96 on June 18
Renergen (REN) has discovered helium with a concentration of 1.1 per cent at its Evander Exploration Rights prospect in South Africa.
Evander spans across around 52,000 hectares, with many abandoned holes drilled for coal and gold exploration.
The well was first drilled years ago and had no surface infrastructure, resulting in the well becoming waterlogged and hidden in the middle of planted land. Despite this, the gas was able to overcome the water pressure, producing 5000 standard cubic feet per day. However, no additional logging on the well has been undertaken.
The company says the discovery at Evander continues to demonstrate the significant potential for exploration.
“Evander is a very interesting prospect, with the discovery solidifying our intent to attempt to convert these exploration rights into a production right,” said Renergen CEO Stefano Marani.
Additionally, the company is focused on targeting ongoing exploration at the Virginia Gas Project through its drill program of a total of six wells, also located in South Africa.
The pipeline for the project, constructed by EPCM Bonisana, has now been performance tested, showing better results than expected. Results showed an almost 7 per cent increase in flow relative to the original design characteristics, along with a 30 per cent reduction in power consumption from what was first estimated.
The plant is now being laid on its foundation and is awaiting the final shipments to be able to install the plant and connect the pipeline.
Renergen shares last traded at $1.96 on June 18.
