Past year: ▲ 65%(36.5c – 1.34 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
30 June 2022drilling result● Neutral
New well Gandalf hit gas at 480m flowing about 90,000 scf/d; it will be drilled to a 1,200m target, expected by end of August. Phase 1 commissioning continues cautiously, with start-up delayed a few weeks to reduce risk, per the CEO.
1 Apr 2022drilling result▲ Good
First two production wells struck gas: Frodo at 23,000 scf/d and Balrog at 90,000 scf/d, with drilling at Balrog continuing. R2D2's flow rose 15% after clean-up. Helium detected in both; composition still to be determined. Balrog was sited by the company's AI vegetation-stress method.
3 Nov 2021resource reserve update▲ GoodMajor
Sproule update as of 1 September 2021: 1P helium reserves up 620% to 7.2 Bcf and 1P methane up 427% to 215.1 Bcf. 2P helium is 13.6 Bcf (from 3.4) and 2P methane 407 Bcf. This resolves the pending reserves update. 2P post-capex NPV at 10% is R51.5bn.
12 July 2021drilling result▲ GoodMajor
P12, earlier slated for plugging, began flowing after drilling fluid dried and is now over 30,000 scf/day with 1.9% helium. This reverses the 30 June plan to abandon it and lifts the campaign to 5 successful wells out of 6.
30 June 2021drilling result▲ GoodMajor
C3PO struck gas flowing over 30,000 scf/day with 1.7% helium and 95% methane. R2D2 shows preliminary helium of 1-2.5%. Wells P10 and P12 will be plugged and abandoned as less promising. The company calls it 4 strikes from 6 planned wells.
21 June 2021drilling result▲ GoodMajor
Helium found at the Evander exploration rights at 1.1% in an old, waterlogged well flowing 5,000 scf/day. The Virginia pipeline passed performance tests, with about 7% more flow and over 30% less power use than designed. Evander is a small, early-stage show.
18 June 2021drilling result▲ Good
R2D2 intersected the target gas-bearing fracture close to prediction, between MDR5 and HDR1. Gas composition results are due within days. This continues the drilling programme and suggests wells could be spaced closer together.
10 May 2021drilling progress report▲ Good
R2D2 reached the base of the Karoo formation, with gas odours in the deeper section like the successful MDR1. Deepening needs several weeks of casing and approvals, so the rig moves to a new site, C3PO. No flow or helium result yet.
11 Mar 2021drilling result▲ GoodMajor
Re-drilled legacy well MDR1 began flowing about 86,000 cubic feet a day after intersecting a fault, less than 600m from the new plant. This resolves the earlier gas shows in mud, and suggests wells can be spaced closer together.
9 Mar 2021drilling result▲ GoodMajor
Exploration well P007 struck gas at just over 400m, flowing over 200,000 cubic feet a day, higher than almost all existing wells. It lies outside the Phase 1 focus area but near the gathering system. Helium results are delayed by lab maintenance.
27 Nov 2020drilling progress report● Neutral
Two rigs are active. P2V2 has cased at the base of the Karoo; MDR1 shows encouraging gas in the mud but directional control is slow. A three-well programme with a new contractor starts within two weeks, and a Sproule reserves update follows several weeks later.
30 Oct 2020drilling progress report▲ Good
P2V2 has drilled through the base of the Karoo and is being logged. A gaseous odour was found on re-entering old well MDR1, where no gas was recorded originally. The CEO says it is encouraging but not a strike.
21 Oct 2020drilling progress report▲ Good
Replacement well P2V2 has set intermediate casing and is expected at or near target by the end of the first week of November. A second directional rig will start on 30 October re-entering old well MDR1, saving time and cost.
10 Sept 2020drilling result▼ BadMajor
The first inclined well was abandoned after the bottom hole assembly was lost in a drill string rupture before reaching the base of the Karoo. It was drilled turnkey, so no cost to Renergen. A new rotary directional rig and an old cased well are now planned.
3 Aug 2020drilling spud● NeutralMajor
The drill rig is preparing to spud the first well of the inclined programme at Virginia, which was delayed from earlier timing. Results are about a month away, when the well reaches the base of the Karoo. No result yet.
9 July 2020drilling progress report● Neutral
First inclined well is delayed by COVID-19 restrictions: drill site access was given 2 July, spud expected late July, and target reached late August. The CEO says the focus is a successful well over a fast one.
7 July 2020resource reserve update▲ GoodMajor
Sproule estimates undiscovered prospective helium resources at the Virginia project of 32.5 / 106.3 / 344.2 Bcf (low / best / high), un-risked. These are new and sit alongside the earlier 6.8 Bcf reserves and 20.9 Bcf contingent resources; they carry significant exploration risk.
13 May 2020drilling scheduled▲ GoodMajor
Contract signed with Bohrmeister to drill the first inclined well for Phase 1, about 6 weeks to mobilise and 8 weeks to drill. It tests the inclined-well plan adopted in March, aiming at fractures where helium is around 2%.
10 Mar 2020drilling progress report● NeutralMajor
The horizontal well suffered technical problems and water ingress, needing several side-tracks. Data shows the 12% helium gas rises along two faults with about 31km combined strike, so the company will switch to inclined wells every ~300m. Updated reserves are expected in Q2 2020.
21 Jan 2020drilling progress report● Neutral
Drilling was paused over the holidays, with gas pressure unchanged. Electric logging began 17 January to plan the next steps, with results due in weeks. The first inclined Phase 1 well is expected to spud in early February. The project is described as 100% owned.
16 Dec 2019drilling result▲ GoodMajor
The horizontal well hit gas-charged sandstone, flaring at 850,000 scf/day (valves partly closed) with 12% helium and over 75% methane. This resolves the pending sandstone test positively and is a new discovery not in prior reserves; a further 1,200m is planned, with testing due March 2020.
2 Dec 2019drilling progress report● Neutral
The horizontal sandstone well was drilled to 254m and casing set; after drilling out on 29 November, gas shows and a short venting of pressurised gas occurred in the Karoo, before reaching the target sandstone. Cautionary notice issued; no result yet.
17 Oct 2019drilling progress report● Neutral
Horizontal sandstone well is on schedule, with the vertical section at 145 metres. Next, a directional rig will drill a 1.5km string into the Vryheid sandstone and Dwyka targets. No result yet.
11 Sept 2019drilling scheduled▲ GoodMajor
Bohrmeister Technik appointed to drill a horizontal well into the Virginia sandstone, with mobilisation within two weeks and drilling through the rest of 2019. It aims to size helium in sandstone not in current reserves; a 2016 well there showed almost 11% helium.
