- Renergen (RLT) has progressed inclination drilling and detected gaseous odours at the R2D2 well at the Virginia Gas Project in South Africa
- The well was a revision of previously a drilled well, P2V2, where drillers were unable to maintain inclination
- Drilling is targeting the main gas-bearing fracture between existing blowers MDR5 and HDR1
- The work at R2D2 is on track, intersecting the base of the Karoo formation on schedule
- Further, gaseous odours were detected, marking a similar drilling experience to well MDR1, which has since reported a helium concentration of 3.15 per cent
- Meanwhile, logging operations are underway in preparation for casing the R2D2 well and the company has also begun applying for the requisite approvals to continue drilling in the WITS formation
- Shares are trading 2.9 per cent higher at $2.10
Renergen (RLT) has progressed inclination drilling and detected gaseous odours at the R2D2 well at the Virginia Gas Project in South Africa.
At the end of March, the company announced it would start drilling R2D2 after drillers were unable to maintain inclination at the previous well, P2V2.
P2V2 was planned to intersect the main gas-bearing fracture between existing blowers MDR5 and HDR1.
After intersecting the base of the Karoo formation, Renergen decided to wait until the completion of well MDR1 to move the rig over to P2V2 at a revised coordinate, consequently renamed R2D2.
The revised hole aimed to intersect the gas-bearing fault line slightly above where P2V2 terminates.
Renergen has said drilling is on track with the first target reached at the base of the Karoo formation last week. Encouragingly, this intersection is interpreted to be proximal to the target gas-bearing fracture system.
Further, the company is encouraged by the detection of gaseous odours in the deeper section of the well, which is similar to the drilling experience at MDR1.
MDR1 returned a helium concentration of 3.15 per cent after being re-drilled and re-directed in a well that had been abandoned.
CEO Stefano Marani said the presence of the odour is really good news.
“Especially given the well is interpreted to be so close to the target fractures in the WITS, and we are drilling in the same type of geology as at the successful MDR1 well,” he explained.
Meanwhile, the company has started logging operations in preparation for casing the R2D2 well and has also begun applying for the requisite approvals to continue drilling in the WITS formation.
This work is expected to take several weeks to complete and, consequently, the company has decided to move the drilling rig to a new site, where it will also drill to the base Karoo, pending approvals to drill to final depth at R2D2.
Shares are trading 2.9 per cent higher at $2.10 at 10:30 am AEST.