The emerging natural gas and helium producer says results from the Virginia Gas Project are still a month or so away.
Renergen says it’s preparing to spud the first inclined well at its Virginia Gas Project in the Free State as it taps into what it believes is a significant gas resource and one of the richest helium concentrations globally.
In an update yesterday, the emerging domestic natural gas and helium producer said after several weeks of planning and interaction with its geological and engineering consultants its drill rig was in position and it believed it had planned a hole that would maximise its chances of intersecting gas along the interested fracture systems in the project’s production hub.
Renergen owns Tetra4, the holder of the only onshore petroleum production right in the country. Last month it invited bids for the allocation of liquefied natural gas (LNG) in what it billed as the first ever LNG auction in the country. It expects to produce LNG of outstanding purity with an average of greater than 95% methane and almost zero higher alkanes, making it an ideal substitute for liquid fuels as it would burn cleaner and release fewer emissions.
Still a month or so to wait for results before we reach the base of the Karoo, but this is a very exciting time for the Company, especially given the progress on the construction on the plant,” CEO Stefano Marani said.
The company said it would release periodic updates as the drilling programme progressed.
Its shares rose 3% to R14.81 yesterday.
Main Image: The Market Herald
