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RENERGEN LIMITED - 1.9% Helium Surprise in P12 at Virginia Gas Project

Release Date: 12/07/2021 08:30
Code(s): REN     PDF:  
Wrap Text
1.9% Helium Surprise in P12 at Virginia Gas Project

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”)


Natural gas and helium producer Renergen is pleased to announce that the P12 well, which we
previously advised would be plugged and abandoned (ASX release June 30, 2021), was
observed to commence flowing gas (at low rates) in the days following rig release. The flow rate
has subsequently continued to increase with a current flow rate in excess of 30,000 standard
cubic feet per day. Most significantly, the measured helium concentration in the gas stream is
high at 1.9%.

This well was drilled using standard rotary drilling, which uses water as a drill fluid to remove
cuttings during drilling. Fractures intersected during drilling can drain the drilling fluid, and so it is
common practice to use Lost Circulation Material, or LCM, to seal the fractures temporarily and
allow water laden with drill cutting to circulate back to the surface. When drilling is complete the
LCM typically dries and shrinks; in the case of P12, it appears that it took the LCM over a week
to shrink enough to allow gas to flow to surface. Although initially the flow was at very low rates,
the rate has been steadily climbing daily, and is expected to continue to do so until all the LCM
has been completely dried out over the coming weeks.

The figure above shows an approximate trajectory of the well, along with the gas ingress point.
The well targeted an interpreted fault labelled 2089, to ascertain whether the fault is gas-bearing.
“The significance of this discovery cannot be overstated. Whilst drilling the well was risky with a
low conviction of success, the team did its homework and we decided to drill the well to confirm
if this fault is gas-bearing, and more importantly whether it contains helium. I cannot express how
proud I am of the team and its achievements on a 5 for 6 drilling campaign,” said CEO, Stefano

12 July 2021

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.

Date: 12-07-2021 08:30:00
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