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This South African business could turn an R8 investment into R1.5 trillion after new gas findings

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Renewable energy company Renergen has reported promising results after drilling at the Virginia Gas Project, with the group reportedly discovering a significant deposit of natural gases.

The Virginia Gas Project is the only onshore petroleum plant in South Africa. The site covers an area that includes Welkom, Virginia, and Theunissen.

In a shareholder statement on Tuesday (2 November), Renergen said that drilling has now been completed and gas samples from the completed well have confirmed gas contents, with 1.9% helium and 90.8% methane.

Furthermore, the well produces gas at a rate of 187,000 standard cubic feet per day, making this 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, it said.

“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,” said Stefano Marani, chief executive.

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