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- Renergen (RLT) intersects the target gas-bearing fracture system, close to prognosis, at the R2D2 well within the Virginia Gas Project in South Africa
- The company is expecting compositional results from collected samples in the coming days
- CEO Stefano Marani says the results will help improve the accuracy with which Renergen identifies gas-bearing structures in the reserve area
- RLT will run electric logs to determine the orientation of faults, allowing the team to plan for finishing the well with maximised contact with the fracture
- Company shares are up a slight one per cent to $1.97 each at 10:36 am AEST
Renergen (RLT) has intersected the target gas-bearing fracture system, close to prognosis, at the R2D2 well within the Virginia Gas Project in South Africa.
The company began drilling the well at the end of March after drillers were unable to maintain inclination at the previous P2V2 well, which also aimed to intersect the fracture between blowers MDR5 and HDR1.
The natural gas and helium producer will now collect gas samples from R2D2 for laboratory analysis and expects compositional results in the coming days.
“This is a great result and will go a long way in helping improve the accuracy with which we identify gas-bearing structures in the reserve area while also showing the critically important feature that we may potentially be able to reduce our well spacing,” Renergen CEO Stefano Marani said.
RLT’s forward program will include running electric logs to ascertain the orientation of faults, thereby allowing the team to plan for finishing the well with maximised contact with the fracture.
Shares in Renergen are up slightly by one per cent to $1.97 each at 10:36 am AEST.
