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Cautionary Update on Horizontal Drilling
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”)
CAUTIONARY UPDATE ON HORIZONTAL DRILLING
Emerging domestic natural gas and helium producer Renergen is pleased to provide the
following update on its current horizontal drilling operations targeting the previously announced
90 sq km sandstone unit within the Company‘s Production Right area.
Background
The horizontal well has been designed to evaluate the extent and composition of any gas in this
sandstone unit, where a previous vertical well encountered overpressured natural gas with a
very high (11%) concentration of helium. A successful horizontal well, establishing material
extent and sustainable commercial gas flow rates for this target reservoir, would underpin a
significant expansion (“Phase II”) of the Virginia Gas Project currently being developed.
Current Operations
The well was drilled to a depth of 254 metres in the Karoo Formation overlying the target
sandstone, and casing has been set in anticipation of penetrating the sandstone a short
distance laterally from the casing shoe. Given the high pressures and concentration of helium
encountered in the original discovery well, the Company has taken all necessary measures to
ensure the integrity of the well and has successfully confirmed the integrity of the casing
cementation.
Drilling out of the casing shoe commenced on 29th November 2019 and the well is currently
drilling ahead horizontally in Karoo Formation. Shortly after drilling out of the casing shoe, while
still in the Karoo Formation (i.e. prior to intersecting the target sandstone) shows of gas were
recorded in the drilling mud followed by a short-term venting of pressurized gas.
Cautionary
Evaluation of the drilling in the horizontal sandstone section, once penetrated, will be reported
as soon as meaningful results are available. Until such time as these results become available
the Company is unable to provide any further guidance, and accordingly advises caution is
dealing with the Company‘s securities.
Johannesburg
2 December 2019
Designated Advisor
PSG Capital
For Australian Investors & Media, contact Citadel-MAGNUS
Cameron Gilenko, 0466 984 953
Tom Kohlen, 0419 95 526
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.
www.renergen.co.za
Date: 02-12-2019 08:00:00
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