Renergen Limited announced early success in its recently commenced production drilling campaign for feed to Phase 1 of the Virginia Gas Project. The first two wells in the campaign have flowed initial gas (gas composition yet to be determined). In addition, the previously reported R2D2 has following clean-up operations increased its flow rate by 18,000 standard cubic feet, or 15% since the well was first completed.

The two new wells drilled are as follows: Frodo: first well drilled since R2D2 and C3PO. The well was drilled to target depth within 10 days, and struck gas early with a flow rate of 23,000 standard cubic feet per day; Balrog: the second well drilled and struck gas over this last weekend. The flow rate through a diverter is recording 90,000 standard cubic feet per day, indicating potentially higher stabilised flow following clean-up.

Drilling is not yet complete and there is still some way to go before reaching target depth. Importantly, the two new wells were sited using different exploration techniques as a guide for future planning purposes. Frodo was sited using only the latest fault structure interpretation, while Balrog was sited using Renergen's "conviction scoring" AI methodology, based on biological (vegetation stress) markers with no other geological input.

The wells were drilled to intersect the planned fracture sets around 500 metres total vertical depth. Helium has been detected in both wells, and samples will be dispatched for full composition analysis when the drilling is complete and flow rates have stabilised. All production holes are percussion drilled to intersect natural fracture systems in the quartzites formation, at depths that range from 412 metres measured depth to 610 metres measured depth, underlying the surface Karoo sediments.

The well are unconventional in the sense that there is no "pay thickness", and successful wells flow very low pressure gas from unconstrained open hole tests of the entire sub-Karoo section. Renergen, through its 100% subsidiary Tetra4, owns 100% in all the wells drilled, which are both located less than 1 kilometre from the new plant in construction.