- A well abandoned and plugged by Renergen (RLT) last month has now been observed to commence flowing gas and is reportedly climbing daily
- Renergen closed the well last month after believing it had failed to strike gas
- Although initially at lower rates, Renergen says the well now has a gas flow rate of 30,000 standard cubic feet per day and a helium concentration of 1.9 per cent
- Renergen says this rate has been climbing daily and is anticipated to continue over the coming weeks
- Renergen shares are up 2.76 per cent and trading at $1.68 at 12:33 pm AEST
A well abandoned and plugged by Renergen (RLT) last month has now been observed to commence flowing gas and is reportedly climbing daily.
The ASX-lister advised it would be closing the well in South Africa last month after it failed to strike gas, but began to commence flowing gas — albeit at low rates — in the days following rig release.
Renergen said the flow rate has continued to increase since then with a current flow rate in excess of 30,000 standard cubic feet per day, with a measured helium concentration in the gas stream of 1.9 per cent.
In its explanation for the occurrence, Renergen said it believed it took the Lost Circulation Material over a week to shrink enough to allow gas to flow to the surface, when it would usually dry out after drilling has been completed.
Although the flow was at very low rates initially, Renergen said the rate has been climbing steadily daily and is anticipated to continue over the coming weeks.
Renergen Chief Executive Officer Stefano Marani said the significance of this discovery could not be overstated.
“Whilst drilling the well was risky with a low conviction of success, the team did its homework and we decided to drill the well to confirm if this fault is gas-bearing, and more importantly whether it contains helium,” he said.
Renergen shares were up 2.76 per cent and trading at $1.68 at 12:33 pm AEST.