Developing South Africa’s First On-Shore Field
Renergen developed South Africa’s first onshore field, including the production of Helium and Methane from Fractured Precambrian Basement. Sproule ERCE worked closely with Renergen, beginning in 2008, to evaluate, quantify, and assist in developing a world-class helium field with associated LNG facilities. The successful completion of this project not only enhances South Africa’s energy security but positions the country as a major player in the global Helium market.
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Project Highlights
- First Onshore Field Development in South Africa
- Helium and Methane Production from Fractured Precambrian Basement
- Sproule ERCE worked with Renergen from 2008 to evaluate, quantify, and assist in developing a world-class Helium field with associated LNG facilities
Challenges:
Complex Technical Requirements: Highly unusual reservoir with complex geological and engineering problems.
Inconsistent Original Data: The dataset included many older water wells, gold mine data, and data not usually used in Oil & Gas evaluations.
Uncertainties in Production Profiles: Well production profiles are low-pressure wells with limited declines and indications of very long production lives.
Financial Environment: Economic evaluations had to include multiple currency valuations and labor costs to support stock exchange listing.
Inconsistent Original Data: The dataset included many older water wells, gold mine data, and data not usually used in Oil & Gas evaluations.
Uncertainties in Production Profiles: Well production profiles are low-pressure wells with limited declines and indications of very long production lives.
Financial Environment: Economic evaluations had to include multiple currency valuations and labor costs to support stock exchange listing.
Solutions:
Construct Type Wells: Sproule ERCE integrated the original data to construct three type wells representing the range of expected values.
Assess the Interactions between Variables: The constructed type wells were checked against a stochastic evaluation of the original in-place gas volumes.
Implement Newest Data: As new wells were brought online the type wells were updated with newer data.
Methane and Helium Compliant Report Generated: An ASX and JSE Compliant Report meeting PRMS standards for both Methane and Helium Reserves and Resources was generated.
Assess the Interactions between Variables: The constructed type wells were checked against a stochastic evaluation of the original in-place gas volumes.
Implement Newest Data: As new wells were brought online the type wells were updated with newer data.
Methane and Helium Compliant Report Generated: An ASX and JSE Compliant Report meeting PRMS standards for both Methane and Helium Reserves and Resources was generated.
Values:
Improved Shareholder Confidence: The reports provided by Sproule ERCE are used to support investment decisions and maximize resource-based investments.
Enhanced Listing Confidence: Shares of Renergen are traded on the ASX and JSE and are planned to list on the NASDAQ, based off Sproule ERCE’s independent analysis of Methane and Helium volumes and economics.
Collaboration for a long-term development plan: Sproule ERCE worked with the client's team to build out the sub-surface model which informed the development plan.
Future Development: Phase I was brought on in 2023 with 2,500 Gj / day of LNG and 350 kg/d of Helium
Enhanced Listing Confidence: Shares of Renergen are traded on the ASX and JSE and are planned to list on the NASDAQ, based off Sproule ERCE’s independent analysis of Methane and Helium volumes and economics.
Collaboration for a long-term development plan: Sproule ERCE worked with the client's team to build out the sub-surface model which informed the development plan.
Future Development: Phase I was brought on in 2023 with 2,500 Gj / day of LNG and 350 kg/d of Helium