NATURAL gas and helium producer Renergen’s share price increased 10.47 percent yesterday after it reported that its drilling at its inclined well R2D2 had been completed, and gas samples had confirmed gas contents, with helium of 1.9 percent and methane of 90.8 percent.
Furthermore, the well was producing gas at a rate of 187 000 standard cubic feet per day, making it one of the more significant gas strikes in the Virginia Gas Project, and well above the average of 120 000 standard cubic feet per day of current wells.
“We are really pleased with this result. The helium is as expected, but more importantly the flow rate is higher than expected and the gas intersection is almost exactly on prognosis, which reaffirms our modelling of the predicted gas-bearing structures,” chief executive Stefano Marani said in a statement yesterday.
BUSINESS REPORT ONLINE