Join our daily newsletter At The Bell to receive exclusive market insights
- Renergen (RLT) significantly increases the methane and helium reserves at its Virginia gas project in South Africa
- The 1P helium reserves have increased 620 per cent to 7.2 billion cubic feet (Bcf) and 1P methane reserves increased by 427 per cent to 215.1 Bcf
- CEO Stefano Marani says the increases confirm the Virginia project as a world-class helium asset to supply South Africa and the global market
- Company shares are up 16 per cent to trade at $3.26
Renergen (RLT) has significantly increased the methane and helium reserves at its Virginia gas project in South Africa.
Following a successful drilling program, the energy stock commissioned an international reserves and resources accreditation agency to estimate the reserves and resources within its production right area. This area covers 187,000 hectares and Renergen holds a valid licence over it until September 2042.
Positively, 1P helium reserves have increased 620 per cent to 7.2 billion cubic feet (Bcf) and 1P methane reserves increased by 427 per cent to 215.1 Bcf.
“The significant growth in methane and helium Reserves at Virginia is a major milestone for the company and confirms Virginia as a world-class helium project,” CEO Stefano Marani said.
“After more than two years of hard work by the exploration team, the results speak for themselves, and I would like to thank the whole team for their dedicated effort and focus.”
Renergen is focused on positioning the Virginia gas project to supply helium into the South Africa and global market and increasing the helium reserves is considered a “great step forward” in achieving that goal.
“2021 has been an excellent year for Renergen, with several milestones achieved and we look forward to firmly ending the calendar year,” Mr Marani continued.
“2022 is shaping up to be even more exciting as we commence production from the phase one plant and begin generating revenue.”
Company shares were up 16 per cent to trade at $3.26 at 11:02 am AEDT.
