RENERGEN LIMITED - Updated Reserve Review Results

Updated Reserve Review Results

RENERGEN LIMITED
Incorporated in the Republic of South Africa
(formerly Dominica Trade Proprietary Limited)
(Registration number: 2014/195093/06)
Share code: REN ISIN: ZAE000202610
(“Renergen” or “the Company”)

UPDATED RESERVE REVIEW RESULTS

Shareholders are referred to the Independent Reserves Update Report
included in the circular distributed to shareholders on
28 October 2015 (“2015 Report”) and are hereby advised of the
results of the latest independent reserve review of the Virginia
Project held by the Company’s subsidiary Tetra4 Proprietary Limited,
dated 30 September 2016.

Net Reserve volumes have increased, primarily based on drilling
results during the past 12 months. The table below provides a
comparative summary of the results of the reserve review:


             Proved,   Proved   Probable     Proved   Possible    Proved,
          Developed,                            and              Probable
           Producing                       Probable                   and
                                                                 Possible


Company Net Gas (million cubic feet)


   2015           -    24 830    56 478     81 308    145 721     227 029


   2016           -    32 412    68 514    100 927    155 450     256 376


      %          0%       31%       21%        24%         7%         13%
 change


Net reserve volumes have increased the total Proved and Probable
Reserves to 100,927 MMcf, an increase of 24% since the 2015 Report.

Reserve volumes have been reported on a company net basis. This
illustrates the volumes attributable to the Company after all burdens
have been accounted for.

The exploration costs incurred amounted to approximately
R4.8 million, which consisted primarily of the drilling of four wells
over the last 12 months and the updating of the detailed geological
model.
Based on the success of this campaign, the new geological information
allowed for the addition of a number of Probable and Possible
locations adjacent to the wells as well as new Proved locations
along the fault lines that were further defined by drilling.

ECONOMIC ASSESSMENT

The revised reserve volumes have resulted in an updated economic
assessment of the Company’s Virginia assets as set out below:


Discount      Proved,    Proved   Probable     Proved   Possible    Proved,
    rate   Developed,                             and              Probable
            Producing                        Probable                   and
                                                                   Possible


      0%           -     15 619     37 131     52 750     84 973    137 723


      5%           -      6 896     13 305     20 201     25 032     45 233


      8%           -      4 781      8 549     13 330     14 730     28 060


     10%           -      3 875      6 689     10 564     11 012     21 576


     15%           -      2 484      4 076      6 560      6 187     12 747


     20%           -      1 722      2 771      4 493      3 990      8 483


*The above figures are represented in ZAR million.

Venmyn Deloitte's report indicates a value of R6,6 billion
representing P1 Proven gas reserves at 10% discount and P2 Probable
gas reserves at 20%, which demonstrates the financially prudent and
sophisticated scientific methodologies being used in determining
where to drill, shows a good understanding of the reserve,
demonstrates management’s ability to continue to enhance and unlock
shareholder value in the country’s first and only onshore petroleum
production right. The above reserve estimates were signed off on the
30th of September 2016 by a qualified reserves evaluator, Mr R
Bertram, and is based on assumptions including USD/ZAR of 12 and a
gas sales price of ZAR 210/GJ.

“The increased reserve volumes are material to Renergen, not only
because of the increased valuation ascribed to it, but more
importantly that as a company we are now ready to look at meaningful
base load power solutions to industrial companies in the area,” said
Stefano Marani (CEO).


CONFERENCE CALL
Renergen and Venmyn Deloitte will host a call at 12:00pm SA today
(05 October 2016) to discuss the results of the Reserve Update. Dial
+2711 535 3600 to join the call. The presentation and Independent
Reserves Update Report are available from www.renergen.co.za.
Email investor queries to investorrelations@renergen.co.za

Johannesburg
5 October 2016

Designated Adviser
Merchantec Capital

Independent Techno Economic Advisor
Venmyn Deloitte

Date: 05/10/2016 08:42:00 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.