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Horizontal Well for Virginia Gas Project to Establish Possible Extension of Helium Reserves
RENERGEN LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2014/195093/06)
JSE Share code: REN
ISIN: ZAE000202610
Australian Business Number (ABN): 93 998 352 675
ASX Share code: RLT
(“Renergen” or “the Company”)
HORIZONTAL WELL FOR VIRGINIA GAS PROJECT TO ESTABLISH POSSIBLE
EXTENSION OF HELIUM RESERVES
Emerging Liquefied Natural Gas and helium producer, Renergen Limited (“Renergen” or the
“Company”), announces the appointment of Bohrmeister Technik Proprietary Limited
(“Bohrmeister”) as the well credentialed drilling contractor to undertake the drilling of a
horizontal well in the prospective sandstone contained within the Virginia Gas Project’s
production area. Bohrmeister is a drilling contractor that specialises in the manufacture and
supply of hydraulic exploration drilling rigs in South Africa.
Site mobilisation is expected to take place within two weeks, followed by a drilling campaign,
which is expected to continue for the rest of the calendar year. The horizontal well will provide
the requisite information to enable estimation of the scale of helium reserves contained within
the sandstone, which have not been factored into existing reserve estimates. The previous
well drilled into the sandstone in 2016 had helium concentrations of almost 11%.
Over the past 6 months, Renergen has been working closely with its geological consultants,
Shango Solutions, to optimise the information captured.
Renergen has identified in the production area a discrete sandstone body of varying quality
occupying an area of at least 90 square kilometres, which is up to 100 meters thick in certain
parts. Below the sandstone are interpreted north-south oriented, steeply dipping fractures, and
east-west orientated dykes associated with fractured margins. These structures have been
identified as being potentially gas-bearing conduits with a higher helium concentration than
the rest of the field, where the helium concentration is over 3% on average.
The geological model developed over the past 6 months forms the basis of our drilling strategy
for 2020, which includes additional inclined wells to intersect known fault structures in the
current production area, and will serve to feed Phase I of the Virginia Gas Project, with planned
daily production of 2,700 gigajoules of LNG and 350 kg of helium from 2021.
The horizontal well, if successful, will form the basis for the commencement of Phase II which
will see production levels anticipated to be several multiples as compared to Phase I.
The Company will provide regular updates on the drilling.
To readers reviewing the announcement on the Stock Exchange News Service, or SENS, this
announcement may contain graphics and/or images which can be found in the PDF document
posted on the Company’s website: https://www.renergen.co.za/sens-announcements/
Johannesburg
11 September 2019
Designated Advisor
PSG Capital
Date: 11/09/2019 08:30:00
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