Renergen: An attractive asset, and the appeal is growing
The renewable-energy group is the only holder of onshore natural petroleum gas exploration rights in SA it represents a unique asset
Weighing in with a market cap of only R820m, Renergen may not be on the radars of many investors.But the renewable-energy group is already drawing attention from heavyweight companies; as the only holder of onshore natural petroleum gas exploration rights in SA it represents a unique asset.Renergen is commercialising a substantial reserve of methane gas — a 187,000ha (1,870km²) block in the Free State goldfields centred on the town of Virginia. Natural gas exploration rights are held over a further 98,000ha in the same area and 52,000ha in the Evander area of Mpumalanga.The Virginia reserve is proving to be vast. US firm MHA Petroleum Consultants values it at R8.4bn."All our forecasts are based on proven reserves only, which makes our geological risk very low," says Renergen CEO Stefano Marani.The first small-scale production at the Virginia reserve started in May 2016. Work is still confined to only one well, which is already earning its keep. Renergen secured its first commercial ...
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