We are thrilled to announce a significant gas strike in well P007 by domestic natural gas and helium producer, Renergen. Located at the base of the Karoo sediments, at a depth of just over 400 meters, P007 marks a significant achievement in our ongoing exploration efforts.
P007 was initially considered a true exploration well, distinct from development/appraisal wells, aimed at informing possible resources for Phase 2 development. The success of P007 is particularly notable as it lies outside the primary focus area for Phase 1 development, currently under construction. However, its proximity to the Phase 1 gas gathering system adds strategic value to our operations.
Upon reaching the base of the Karoo sediments, P007 penetrated a ~6 meter thick gas-bearing and fractured sandstone layer. This resulted in the displacement of drilling fluid and the commencement of gas flow to the surface, indicating promising potential.
Notably, the current flow rate from P007 exceeds that of almost all other existing wells in the permit area, surpassing 200,000 cubic feet per day.
While gas samples have been collected to determine composition, including helium concentration, the release of results may experience a delay due to limited availability of requisite analytical equipment. The equipment is currently undergoing maintenance at accredited laboratories traditionally used by the Company.
In the coming weeks, P007 will undergo under-reaming to increase the well’s diameter before setting casing and preparing for production. Once the laboratories resume operations, we eagerly anticipate sharing the gas composition and helium results with the market.
The success of P007 is a testament to our commitment to advancing exploration efforts and underscores our position as a leading player in the domestic natural gas and helium production sector. We look forward to further updates as we continue to unlock the full potential of our resources.