Renergen (ASX:RLT) raises nearly $7 million
  • LNG and helium producer Renergen (RLT) has announced an update to its current drilling operations at its Virginia Gas Project
  • Renergen has two drill rigs active on the South African based site working on two different wells
  • The P2V2 well is being prepared for directional drilling, after a series of delays in previous months
  • The other well, MDR1, has already been subjected to directional drilling with encouraging gas shows sighted
  • In addition, Renergen has announced a three-well drilling program is due to begin in the coming weeks with a new contractor
  • Shares in Renergen are trading up 2.13 per cent at $1.20 each

Renergen (RLT) has announced an update to its current drilling operations at its Virginia Gas Project in South Africa.

The helium and LNG producer currently has two drill digs active at the site in the country's Free State province.

One of them, the P2V2 well, is being prepared for directional drilling to intersect sub-vertical fracture systems which act as the conduit for gas flows in nearby producing wells.

The well has been hit by a number of issues in recent months, including drilling delays and the loss of bottom hole assembly in-hole.

In the meantime, the other MDR1 legacy well, which is located 300 metres from a known gas-productive fracture, has already been re-entered with a directional drilling unit.

Renergen said while directional control from the base of Karoo has so far been slow, "encouraging gas shows are clearly evident in the drilling mud."

Once its resolved the directional control issues, RLT is planning to drill to the target fractures before evacuating the drilling mud and flow-testing the hole.

Alongside this drilling program, the company said planning is well advanced for another three well program with a new drilling contractor.

Renergen advises that those new operations are expected to commence in the next two weeks.

Shares in Renergen are currently trading up 2.13 per cent at $1.20 each at 2:41 pm AEDT.


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