Renergen Shares Up More Than 26% on Reserves Update (ASX:RLT)
The Renergen Ltd [ASX:RLT] share price is rocketing today after the company announced an increase in methane and helium reserves at their Virginia Gas Project.
Renergen is an emerging helium and domestic natural gas producer. Their focus is the Virginia Gas Project, which is located in the Free State province of South Africa, and which Renergen holds the license until September 2042.
A more than 600% increase in helium and over 400% in methane reserves
After a recent drilling campaign, Renergen hired Sproule, an international reserves, and resources accreditation agency to provide an estimate on reserves and resources at Virginia’s Production Right area. The area covers 187,000 hectares in Free State near Welkom and Virginia.
After finishing the estimated upgrade, Sproule has updated their methane and helium reserves. 1P helium reserves at Virginia have increased by a whopping 620% to 7.2 billion of standard cubic feet (Bcf) from 1 Bcf since March 2019. For 1P methane, the increase is by 427% from 40.8 to 215.1 Bcf.
Renergen’s CEO Stefano Marani said:
‘The significant growth in methane and helium Reserves at Virginia is a major milestone for
the Company and confirms Virginia as a world-class helium project.
‘We have and continue to work towards ensuring Virginia is well-placed to supply helium into a
growing and constrained market. Increasing our 1P helium reserves by over 600% since March
2019 is a great step forward in achieving this goal and importantly, highlights the enormous
potential of Virginia to become a significant helium supplier to not only South Africa but globally as well. Additionally, an estimated 400 petajoules of methane at 2P also positions the Company exceedingly well to become an integral part of South Africa’s energy mix.’
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What happens next to the RLT Share Price?
The company said they are looking forward to 2022 when Renergen is planning to begin production from Phase 1 Plant and expects to start generating revenue.
The share price is on a meteoric rise today with the share price trading at $3.56 at time of writing, up almost to 27% from yesterday’s close at $2.81. The share price is up 230% since the beginning of the year.
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