South African natural gas and helium producer Renergen (RLT) has recorded a flow rate from a wild card well higher than almost all wells in the permit area.
The exploration well, P007, is being drilled to inform possible resources for phase two of development in South Africa.
At the base of the Karoo sediments, a depth of some 400 metres, the well struck a six-metre-thick gas bearing and fractured sandstone layer. This displaced drilling fluid and prompted gas flow to the surface.
Renergen has recorded a flow rate of more than 200,000 cubic feet per day, a rate it is touting as one of the highest recorded among exisiting wells on the permit.
“This is a truly spectacular result, with flow rates higher than almost all other wells in the existing areas. Importantly, what makes the gas strike at P007 even more impressive is that it was one of our wild-card exploration wells,” said CEO Stefano Marani.
“This result is not only going to have a meaningful impact on our resource base, but highlights the effectiveness of inclined percussion drilling, which was used for the first time by Renergen. The success of P007 now provides the company with a clear path on which drilling technology to deploy for all future drilling.”
Renergen noted P0007 is located outside of the focus area for phase one development, which is under construction, but is still in close proximity to the gas gathering system.
Gas samples have been sent to the normal accredited laboratories for analysis. However, the laboratories are conducting maintenance on equipment, which will likely delay the results.
In the meantime, p007 will be under-reamed to increase the diameter of the well, cased and prepared for production.
Shares last traded at $1.58.
Samantha Goerling
9 March 2021
The Market Herald