Renergen reports ‘exceptional’ helium concentrations at Virginia Gas Project

Domestic natural gas and helium producer Renergen is “ecstatic” about the high concentrations of helium discovered at its Virginia Gas Project in South Africa’s Free State.

Last week, the South African company obtained laboratory results on the helium concretions from recently drilled wells P007 and MDR1, showing findings the exceeded expectations.

Sharing the results, Renergen said the flow rate at MDR1 has increased by almost 90% to approximately 164,000 standard cubic feet per day.

Commenting on the results, Stefano Marani, CEO of Renergen, said, “MDR1 is just 300 meters away from MDR5 and 600 meters from HDR1, which are both blowers with helium concentrations of ~2%, so getting a concentration of 3.15% was a very pleasant surprise.”

“It will be interesting to see when and if the helium concentration reduces and stabilises in line with the nearby wells, but a key take-away from the excellent result is that despite the wells being so close, there does not appear to be any immediate interference between the wells which is a great result for our reserve update.”

“On P007, the team is ecstatic, and this exceeds anything we were hoping for. This is a big leap forward in corroborating out geological modelling of the Virginia Gas Project, and the potential additional supply of over 40kg of helium per day from a single well is quite an outstanding result.”