Alternative energy company Renergen on Wednesday announced a 24% increase in the natural gas reserves held at subsidiary Tetra4’s Virginia project, in the Free State.
The Alt-X-listed group’s R4.8-million drilling and exploration activities uncovered total net proven and probable reserves of 100-billion cubic feet of natural gas, up from the 81-billion cubic feet reported in 2015.
This followed the drilling of four wells over the last 12 months and the updating of the detailed geological model, which also added a number of probable and possible locations adjacent to the wells, as well as new proven locations along the fault lines.
The revised reserve volumes also led to an updated economic assessment of the Virginia assets, with Venmyn Deloitte unpacking values of R6.6-billion, representing P1 proven gas reserves at 10% discount and P2 probable gas reserves at 20%.
“The increased reserve volumes are material to Renergen, not only because of the increased valuation ascribed to it but, more importantly, that as a company we are now ready to look at meaningful baseload power solutions to industrial companies in the area,” concluded CEO Stefano Marani.