Mixed news from Renergen
Mixed news from Renergen
Published Date: 2021-04-06 | Source: Stephen Gunnion | Author: Stephen Gunnion
Financial director Fulufhedzani Ravele has resigned as the company works towards production at its Virginia Gas Project this year.
Renergen's shares fell over 10% at their worst on Thursday, reversing some of last week's gains, after it said its financial director had resigned with immediate effect.
The emerging helium and natural gas producer said Fulufhedzani Ravele was leaving to pursue other opportunities. Her resignation comes as the company works towards commencement of production at its Virginia Gas Project in the Free State this year.
Smalltalk Daily Research analyst Anthony Clark said he didn't believe there was anything untoward to report about Ravele's resignation. After almost doubling in value in March, a pullback in its share price was to be expected as some investors took profit ahead of the long weekend. A trading update earlier in the week was also much better than expected, indicating a material reduction in its loss for the year to end-February.
In a separate announcement on Thursday, Renergen said it had completed the fifth major milestone at the project on time, including the shipment of essential equipment from China to SA. The equipment includes LNG/LHe (liquefied natural gas/liquid helium) process plant compressor modules and LNG bulk storage tanks, amongst other items.
Renergen owns Tetra4, the holder of the only onshore petroleum production right in SA, with proven methane reserves and what Renergen believes is arguably one of the highest concentrations of helium. Its shares rallied 15% on last Monday after it said results from recent drilling samples were exceptional, particularly its "wild card" P007 well.
Laboratory results on the helium concentrations from the recently drilled P007 site showed a concentration of 4.38%, while its MDR1 well returned a concentration of 3.15%. Since an earlier announcement on 11 March, it said the flow rate at MDR1 had increased by almost 90% to approximately 164,000 standard cubic feet per day, consistent with expectations as lost circulation drilling fluids introduced into the borehole dissipated and dried out.
The company said its board had commenced a process of identifying a suitable replacement for the financial director role.
Its shares closed 10% lower at R26.35 on Thursday, paring gains for the year to 122%.
FINANCIAL DIRECTOR-- Nqubeko Cue Sibiya (@CueSibiya) April 1, 2021
Fulufhedzani Ravele has resigned, with immediate effect, as financial director of Renergen to pursue other opportunities. pic.twitter.com/3ZSnzBMqMR
Sell side should be upgrading JSE rev estimates due to the flood of Renergen SENS announcements.... https://t.co/qIZZLyYohx-- JSE School Bus (@JSE_School_Bus) April 1, 2021