Try our mobile app

CANCELLATION OF S459257 Early Success in Production Drilling Programme

Published: 2022-03-31 11:21:59 ET
<<<  go to JSE:REN company page
Renergen Limited (JSE:REN) News - CANCELLATION OF S459257 Early Success in Production Drilling Programme

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”)

EARLY SUCCESS IN PRODUCTION DRILLING PROGRAMME

Renergen is pleased to announce early success in its recently commenced production drilling
campaign for feed to Phase 1 of the Virginia Gas Project. The first two wells in the campaign have
flowed initial gas (gas composition yet to be determined). In addition, the previously reported
R2D2 has following clean-up operations increased its flow rate by 18,000 standard cubic feet, or
15% since the well was first completed.
The two new wells drilled are as follows:

   •   Frodo: first well drilled since R2D2 and C3PO. The well was drilled to target depth within
       10 days, and struck gas early with a flow rate of 23,000 standard cubic feet per day
   •   Balrog: the second well drilled and struck gas over this last weekend. The flow rate
       through a diverter is recording 90,000 standard cubic feet per day, indicating potentially
       higher stabilised flow following clean-up. Drilling is not yet complete and there is still some
       way to go before reaching target depth

Importantly, the two new wells were sited using different exploration techniques as a guide for
future planning purposes. Frodo was sited using only the latest fault structure interpretation, while
Balrog was sited using Renergen’s “conviction scoring” AI methodology, based on biological
(vegetation stress) markers with no other geological input. The wells were drilled to intersect the
planned fracture sets around 500 metres total vertical depth.

“Whilst a sample of two is hardly conclusive, since deploying the conviction tool we developed,
the drilling success rate is significantly improved. Since we started drilling, we have only had a
single drilling failure. We are quite excited to see the results of what the drilling campaign looks
like once we have overlayed the machine learning algorithm to the dataset,” said CEO, Stefano
Marani.

Helium has been detected in both wells, and samples will be despatched for full composition
analysis when the drilling is complete and flow rates have stabilised.

Renergen, through its 100% subsidiary Tetra4, owns 100% in all the wells drilled, which are both
located less than 1 kilometre from the new plant in construction.

Johannesburg
31 March 2022

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: 31-03-2022 01:21:59
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.