Renergen - On track for liquid production by mid-2021
Renergen had a strong H219 as it secured final funding for Phase 1 of its Virginia Gas Project. The project is now firmly in the development phase, major equipment orders have been placed and first liquid production of both LNG and helium is expected to start around July 2021 – with the latter a first for sub-Saharan Africa. Our updated risked NAV of ZAR23.9/share suggests considerable upside potential to the current share price. However, economics and upside could be further enhanced if a directional well currently being drilled into an untested sandstone group at Virginia proves successful. Renergen has already announced preliminary results for the well, which indicate substantially better gas flows than expected, and most critically helium concentration of 12% (compared with 2–3% in its previous wells).Renergen Ltd. Renergen Limited is an integrated alternative energy company. The Company invests in early-stage alternative energy projects. The Company focuses on the alternative and renewable energy sectors in South Africa and sub-Saharan Africa. The Company holds interests in Tetra4 Proprietary Limited (Tetra4) and Windfall Resources Limited (Windfall). Tetra4 is a natural gas producer that provides sustainable, clean energy solutions to energy users in the Free State Goldfields region. Tetra4 has approximately 10 methane-rich natural gas and helium wells. Tetra4 owns the production right, which spans approximately 187,000 hectares in the Free State near Virginia, Theunissen and Welkom, and is surrounded by approximately 98,000 hectares of exploration rights. The Company owns an exploration right of an approximately 52,000 hectare field located in Evander, Mpumalanga, as well as farm-in rights to approximately two reserves near the towns of Kroonstad and Heilbron.
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