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- Renergen (RLT), has announced drilling of the horizontal well has intersected gas charged sandstones and fractures
- The natural gas producer is exploring the Virginia Gas Project in South Africa to unlock its potential as a key helium producer
- Importantly, the gas composition is made up of 12 per cent helium, with methane of over 75 per cent based on gas flow samples
- Renergen plan to drill the well a further 1200 metres in January to maximise the productive reservoir intersection and, hopefully, flow potential.
- Renergen’s shares have spiked 4.71 per cent today and are trading for $1.45 each
Renergen (RLT) has announced drilling of the horizontal well has progressed through the Karoo Supergroup and has intersected gas charged sandstones and fractures.
The gas producer intersected the gas on December 9, after having drilling roughly 50 metres into the sandstone.
Importantly, the gas composition is made up of 12 per cent helium, with methane of over 75 per cent based on preliminary laboratory analysis of the sampled gas flow.
“This has all the indications of being a game changer, and significantly bigger and better than we originally thought,” CEO Stefano Marani said.
“With a 12% helium concentration and these flow rates, this has the potential to become a globally significant helium resource and could make Renergen a significant helium supplier globally,” Stefano added.
This structure is located within the Virginia Gas Project in South Africa. This project is set to position South Africa as the only African commercial helium producer and one of eight countries in the world exporting the natural resource.
The team has reportedly been flaring the gas for initial flow testing, which reached a flow rate of 850,000 standard cubic feet per day.
Renergen plan to drill the well a further 1200 metres in January to maximise the productive reservoir intersection and, hopefully, flow potential.
The reservoir size and deliverability will determine the extend of any reserve, which will eventually determine the size of Phase II of the Virginia Gas Project.
“We will focus on completing the well and flow testing in order to estimate the extent of the accumulation and confirm its deliverability, which we expect to be completed in March 2020,” Stefano stated.
Renergen’s shares have spiked 4.71 per cent today and are trading for $1.45 each at 2:30 pm AEDT.
