RLT - Renergen Limited

[Dona Ferentes]

In my wild wild mild wildcatting days, the blowout fear was always just after spud. Sometimes before, but also after the conductor pipe cemented in, of hitting a pocket of gas. Marlin in Bass Strait was one of these.. the problem being insufficient hydrostatic head to control the inflow. And not being weighted up enough.
Also, geologically, shallow depth can imply no overburden weight and the ability of the caprock to buckle, crack or fracture when subject to external stresses. And this can provide a escape route for fluids to filter out.
That said I know nothing of Karoo sediments or the geological history.

 

[Sean K]

Current Market Cap around $185 million

Is that MC right Barney?

CEO is pretty bullish...

Commenting on the success of well P007, Renergen CEO Stefano Marani said “This is a truly spectacular result, with flow rates higher than almost all other wells in the existing areas. Importantly, what makes the gas strike at P007 even more impressive is that it was one of our wild-card exploration wells.

“This result is not only going to have a meaningful impact on our resource base, but highlights the effectiveness of inclined percussion drilling, which was used for the first time by Renergen. The success of P007 now provides the Company with a clear path on which drilling technology to deploy for all future drilling.”

 

[barney]

Is that MC right Barney?

CEO is pretty bullish...

Yeah I think so Kennas

From CommSec if it is reasonably current

CEO Stefano is traditionally bullish but sometimes any follow up info is short on detail of doesn't eventuate. I just tend to be a bit cautious after a couple of "non events" (the Cryo-Pac carry cases at the moment being a minor concern)

Then Today's Announcement with so much "potential" is printed to the Market with more reasons why we will have to wait (again)

See BOLD below

As I said, I own a few of these, but transparency to me, is more important than results in Spec-land. The wording of the Announcement just seems a bit odd to me, but maybe that is just me. Hopefully it is perfectly truthful and the Gas hit is as good as stated before actual results.

Gas samples have been collected to determine gas composition, including helium concentration.
Unfortunately, results will be delayed due to limited availability of the requisite analytical equipment (currently under maintenance) at the accredited laboratories traditionally used by the Company.
P007 will now be under-reamed to increase the diameter of the well, before setting casing and prepared for production.
As soon as the laboratories come back online over the coming weeks, the gas composition/helium results will be released to market.

 

[Swervin Mervin]

Its unfortunate that the labs testing gear is away for maintenance so the helium% will have to wait a few weeks. Overall huge positive though. I’ve halved my position Barney but still hold close to 200k shares. Less stressful now and still enough to be life changing if they have hit the motherlode. Good luck to all other holders, the ride is just starting by the looks.

 

[Swervin Mervin]

Its killing all of us by the looks!

 

[Austwide]

accredited laboratories traditionally used by the Company.

I would be looking for another lab, unless I didn't want the results in a hurry

 

[barney]

@Swervin Mervin

Definitely not trying to give you or anyone financial advice Merv lol,

But even if RLT goes to the moon from here, I'm glad you have lightened your exposure (given how high your exposure was)

Your wife expects a House for GS (God's sake! Didn't want to blaspheme too loudly)

Something feels a little uneasy about Stefano (Bear in mind i still hold my 2 parcels of Stock)

Perhaps he is just exuberant (and I hope I am 100% wrong) but the last CEO who talked like him (who I spoke to personally)

Was quite happy to circumvent the Market, if you get my drift

I could have made good "beer money" out of his naughtiness, but I chose to walk the other way (The Stock bombed not long after)

Correct decision either way in my book!

Anyway, RLT is interesting. Lets see some real results "Stefano" Without the drama


ps Good luck Merv. I hope you get that nice house upgrade you and your wife are hoping for

 

[Swervin Mervin]

@Swervin Mervin

Definitely not trying to give you or anyone financial advice Merv lol,

But even if RLT goes to the moon from here, I'm glad you have lightened your exposure (given how high your exposure was)

Your wife expects a House for GS (God's sake! Didn't want to blaspheme too loudly)

Something feels a little uneasy about Stefano (Bear in mind i still hold my 2 parcels of Stock)

Perhaps he is just exuberant (and I hope I am 100% wrong) but the last CEO who talked like him (who I spoke to personally)

Was quite happy to circumvent the Market, if you get my drift

I could have made good "beer money" out of his naughtiness, but I chose to walk the other way (The Stock bombed not long after)

Correct decision either way in my book!

Anyway, RLT is interesting. Lets see some real results "Stefano" Without the drama


ps Good luck Merv. I hope you get that nice house upgrade you and your wife are hoping for

Thanks mate yes it seems a bit strange but will roll with it for now!

 

[Swervin Mervin]

Just needs to get to $10 instead of $5 to get the same amount for the house! ?

 

[barney]

Just needs to get to $10 instead of $5 to get the same amount for the house! ?

Lol ... Indeed .... No big deal

 

[Dona Ferentes]

Also, geologically, shallow depth can imply no overburden weight and the ability of the caprock to buckle, crack or fracture when subject to external stress...
That said I know nothing of Karoo sediments or the geological history.

the helium story is what interests me .... from 07 Jul 2020:

It is accepted that helium production in the Earth's crust is primarily controlled by the radioactive decay of certain isotopes of uranium and thorium, so that the helium concentration in any rock or mineral deposit is dependent on its radioelement concentration and the age of the deposit.
The Vredefort impact was a meteor strike in South Africa which occurred around 2 billion years ago, and resulted in the largest known crater globally. This impact has been shown to have resulted in a complete change of the landscape and ultimately resulted in the Witwatersrand basin. The Karoo sediments were deposited after the impact, and it is these sediments which then acted as a trap to keep helium in situ.

 

[barney]

the helium story is what interests me .... from 07 Jul 2020:

It is accepted that helium production in the Earth's crust is primarily controlled by the radioactive decay of certain isotopes of uranium and thorium, so that the helium concentration in any rock or mineral deposit is dependent on its radioelement concentration and the age of the deposit.
The Vredefort impact was a meteor strike in South Africa which occurred around 2 billion years ago, and resulted in the largest known crater globally. This impact has been shown to have resulted in a complete change of the landscape and ultimately resulted in the Witwatersrand basin. The Karoo sediments were deposited after the impact, and it is these sediments which then acted as a trap to keep helium in situ.

Yep agree DF

The Helium factor is potentially huge

Even if Stefano is a little "excited" with his Announcements,

It still doesn't mean that RLT can't be a big story!

Position size relative to potential for me

 

[barney]

Disregarding my caution above, I have to admit the Chart is starting to look interesting.

Be nice to get some definitive results in relation to the recent drilling so I can put this guy away

And replace him with these guys

 

[barney]

I have to admit the Chart is starting to look interesting.

I rest my case

Starting to think I should have bought a few more, lol. (HOURLY Chart)

 

[Swervin Mervin]

I rest my case

Starting to think I should have bought a few more, lol. (HOURLY Chart)

View attachment 121708

And I wish I hadn’t have sold half! Oh well mate we live and die by the sword. Probably be $3+ by the end of the week

 

[frugal.rock]

Well, the helium had to leach into the share price eventually...

In a quick squeaky high pitched helium voice....
"Good one Barney!
Your de bomb"!

???? Beam me up, Scotty.

 

[barney]

And I wish I hadn’t have sold half! Oh well mate we live and die by the sword. Probably be $3+ by the end of the week

Lol. I still think you did the right thing Merv but that is definitely not advice .

Still a few unknowns with this little fella and having a "house" riding on yet to be released results could get a bit scary.

On the flip side, you still have half a house sitting in the saddle so lets hope the stirrups don't slip.

???? Beam me up, Scotty.

Haha. The only bomb i resemble is my mate here after one too many bourbon and cokes

 

[Dona Ferentes]

HELIUM CONCENTRATIONS OF OVER 3% AND 4% IN NEW BOREHOLES

Renergen is pleased to announce it has now obtained laboratory results on the helium concentrations from recently drilled wells P007 and MDR1 (see ASX releases on 9 March and 11 March respectively).

The Company also wishes to advise investors that since the March 11 announcement the flow rate at MDR1 has increased by almost 90% to approximately 164,000 standard cubic feet per day, consistent with expectations as lost circulation drilling fluids introduced into the borehole dissipate and dry out.

“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 this 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 our 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,” said Stefano Marani, CEO. Johannesburg

 

[Dona Ferentes]

Dual listing => different Rules

In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as soon as they become reasonably certain that the financial results for the next period to be reported on will differ by more than 20% from that of the previous corresponding period.

Accordingly the financial results for period ended 28 February 2021 indicates a significant reduction in the loss per share and headline loss per share. The decrease in the loss per share and headline loss per share are expected to be between 27.89 cents per shares and 37.47 cents per share equating to a decrease in the loss per shares and headline loss per share of between 21.8% and 41.8% compared to the loss per share and headline loss per share of 47.92 cents for the period ended 28 February 2020.

Prior year loss per share and headline loss per share included once-off costs incurred on raising of debt funding with The United States International Development Finance Corporation (previously Overseas Private Investment Corporation) and equity funding at Initial Public Offering on the Australian Stock Exchange.

Along with Quarterlies, this disclosure hasn't hindered RLT on the ASX ... up 5%

 

[Dona Ferentes]

Renergen has announced its first helium sales agreement, with a global acting, tier-one automotive supplier, in the Company’s first “Direct-toCustomer” helium deal.

For reasons of confidentiality, Renergen is unable to disclose its customer or details of the sales agreement, but can confirm the customer operates in the automotive sector. The landmark transaction will see a substantial volume of helium from Phase 2 placed directly to the customer through the agreement and is one of the key contracts underpinning Phase 2 development at the Virginia Gas Project.

Commenting on the significance of the Company’s first helium sales agreement, Renergen Chief Executive Officer Stefano Marani said

“We are very proud to announce our first helium sales agreement from the Virginia Gas Project. Importantly, this contract shows the viability of accessing helium directly from the refinery by customers and Renergen diversifying its customer base beyond wholesalers.

“What really excites the team about this sales agreement is that from 2024, if you purchase a German premium brand vehicle, the overwhelming probability is that Renergen’s helium will be powering the airbags keeping you safe.