Renergen (RLT) has struck early success in its recently commenced production drilling campaign for feed to the first phase of the Virginia gas project in South Africa.

The first two wells in the campaign have flowed initial gas, though gas composition is yet to be determined. In addition, the previously reported R2D2 well has seen following clean-up operations increase its flow rate by 15 per cent since the well was completed.

Frodo is the 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 is the second well drilled and struck gas 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.

The company said it is important to note that 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 markers with no other geological input.

The wells were drilled to intersect the planned fracture sets around 500 metres total vertical depth.

Renergen CEO Stefano Marani said: “Whilst a sample of two is hardly conclusive, since deploying the conviction tool we developed, the drilling success rate is significantly improved.”

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 shares were trading at $3.90, up 0.78 per cent, at 2.04 pm AEDT.