Page 10 - GLNG Week 45 2022

GLNG AFRICA GLNG

Renergen abandons

capital raise plan for

South African gas project

INVESTMENT RENERGEN, a JSE- and ASX-listed emerging Virginia gas project is the first and only
helium and liquefied natural gas (LNG) pro- onshore petroleum production right in South
ducer, has submitted a request to the Australian Africa, it is also Renergen’s principal asset with
bourse for a trading halt to be lifted, the company a 100% shareholding. The project comprises
said in a statement. exploration and production rights of 187,000
The company’s shares were placed in a trad- hectares of gas fields across Welkom, Virginia
ing halt on the ASX this week after a report in the and Theunissen, in the Free State.
Australian Financial Review stated that Rener- The gas fields contain proven reserves of
gen was planning a near AUD20mn ($12.8mn) methane-rich natural gas with one of the richest
capital raise to fund drilling and preparation helium concentrations recorded globally. The
work at its Virginia gas project in South Africa, company’s strategy is to expand the project with
Mining Weekly reports. a staged construction of a new helium and LNG
In a statement to the ASX, Renergen said plant.
that the trading halt was requested in relation In late September, Renergen completed a
to a potential non-material capital raise that the commissioning process on the Virginia gas pro-
company was contemplating on the ASX. ject LNG plant and reported its first gas produc-
“Prior to ASX implementing the trading tion. However, the plant was temporarily halted
halt, it had been decided not to proceed with the in October to repair a utility issue detected while
potential non-material capital rise,” Renergen commissioning the helium plant, the company
said in a clarification statement authorised by said.
CEO Stefano Marani on November 8. The delayed commissioning of Phase 1 of the
Renergen said that the company was not Virginia plant has resulted in additional costs
aware how the information had reached the and lost revenue. According to Mining Weekly,
market, writes Mining Weekly. Furthermore, the the proposed capital raise would have been used
company did not believe that confidentiality had to shore up the company’s balance sheet.™
been lost for the purposes of its continuous dis-
closure obligations under the ASX listing rules.

P10 www. NEWSBASE .com Week 45 10•November•2022