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RENERGEN LIMITED - Inclined Well Drilling Update

Release Date: 10/09/2020 09:00
Code(s): REN     PDF:  
Wrap Text
Inclined Well Drilling Update

RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
A2X Share code: REN
ISIN: ZAE000202610
LEI: 378900B1512179F35A69
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)

INCLINED WELL DRILLING UPDATE

Emerging domestic natural gas and helium producer Renergen wishes to update shareholders
on the current inclined drilling programme. The first well in the programme, using a percussion
rig, was unable to reach the casing point at the base of the Karoo sedimentary section after the
bottom hole assembly was irretrievably lost following a drill string rupture. As the drilling was on
a turnkey basis, and at no drilling cost to the company until the base Karoo was successfully
penetrated, it was decided to abandon this well rather than attempt to retrieve the lost assembly.
Following the abandonment of this well, the Company has revised its drilling programme so that
the future wells will entail drilling sub-vertically to the base of Karoo casing point, and then drilling
out of casing to intersect the target gas bearing fault structures at increased inclination using a
newly available rotary rig with directional drilling capabilities.

The Company has been fortunate to source this fit-for purpose rotary drilling rig which is now
being mobilized to site.

In a further positive development, the Company has gained access to an early vertical exploration
well from several years back which is already cased to the base of Karoo and is in close proximity
to the anticipated gas-bearing fault structure; this well will be the first location for deployment of
the directional drilling rig. Going forward, it is anticipated that the programme can be accelerated
by using a separate rig to drill and case to the base of Karoo, and using the directional rig to drill
through to the target faults. The next series of locations have already been identified by the
Company, which will accelerate the exploration drilling from the original programme.

“It is unfortunate that the drilling rod broke, but unfortunately accidents happen beyond anyone’s
control. The silver lining is that it resulted in us gaining access to a fit-for-purpose directional
drilling rig, which means we will be able to drill with far greater confidence and speed. Where we
were drilling one before, now we have multiple targets being drilled concurrently, and in some
highly prospective areas where indications of gas are strong, and no exploration drilling has been
undertaken to date. This is a very exciting time for us on the exploration front, with fortune allowing
us to turn a negative situation into one that could leapfrog our progress,” said Stefano Marani,
CEO. A further statement was made by Stefano and can be seen on the following link:
https://youtu.be/ggInWcxnO-c

Johannesburg
10 September 2020

Authorised by: Stefano Marani
Chief Executive Officer

Designated Advisor
PSG Capital

For Australian Investors & Media, contact Citadel-MAGNUS
Cameron Gilenko, 0466 984 953

To readers reviewing this announcement on the Stock Exchange News Service (SENS), this
announcement may contain graphics and/or images which can be found in the PDF version
posted on the Company’s website.

www.renergen.co.za

Date: 10-09-2020 09:00:00
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