Renergen debut shares surge on Australian Securities Exchange

RENERGEN, the emerging producer of liquid helium and liquefied natural gas (LNG), made its debut yesterday on the Australian Securities Exchange (ASX) with a listing price of A$0.80 a share (R8.30), with more than 290 000 shares traded on the day.

The shares immediately surged by 27.5 percent to A$1.02.

Renergen provides investors with exposure to both natural gas and helium through its proven reserves and existing off-take agreements.

Renergen chief executive Stefano Marani said the group was pleased about the support it had received from new shareholders.

“Today Renergen is welcomed on to the ASX, with tremendous support from new shareholders. On the first day we saw the price trade up to A$1.02 at the close, or up 27.5 percent from listing, with encouraging volume in total shares traded,” Marani said.

Renergen, which has been listed on the Alternative Exchange (AltX) since June 2015, is also developing the country’s first commercial LNG project, the Virginia Gas Project.

The company said it had raised A$10 million with over-subscriptions through the issue of 12.5 million shares at A$0.80.

The group said the A$10m funds raised under the offer would be used for further exploration and expansion of the Virginia Gas Project, which contains a significant natural gas resource and one of the richest helium concentrations globally.

The group said the production rights remained valid for a further 23 years and it was situated in an energy-scarce area with high customer density and limited competition.

Renergen chairperson Brett Kimber said: “The company maintains a prominent position in the South African LNG and global helium markets through established gas sales agreements with the Linde Group, Anheuser-Busch and Black Knight Logistics, operated by its majority owned subsidiary, Tetra4.”

Renergen owns 90 percent of Tetra4, which is the holder of the first and only onshore petroleum production right in South Africa.

Tetra4 received a major boost at the end of February when it received a $40m loan facility for its Virginia gas field project.

The group said the loan – made by the Overseas Private Investment Corporation – would be used for the first phase of development and commercialisation of a 36.4 billion standard cubic feet (bcf) natural gas and 0.87bcf helium field in the Free State.