Renergen listed on the JSE in 2015 and subsequently acquired the assets of Molopo, which holds South Africa’s only onshore petroleum production right to create fuels from natural gases harvested and captured from deposits located in and around Virginia in the Free State.
Molopo – later rebranded Tetra4 – has already completed the construction of a compression station and signed offtake agreements with Megabus. It is also in the process of completing the construction of a plant to produce helium which it co-owns with Linde.
Tetra4 recently updated its reserve: 33 billion cubic feet of proven reserves equivalent to 1 billion litres of diesel. This translates to a market value of R6.6 billion or R77/share, according to a recent Venmyn Deloitte valuation.
Stefano Marani, CEO of Renergen, says the loan from the IDC will enable the company to move from a piloted, proof-of-concept phase into full-scale production.
The pipeline will connect various wellheads owned by Tetra4 to a central processing facility where the gas will be treated and then compressed ready for transport. In addition to infrastructure, the money will be spent on a large-scale drilling program that will add more wellheads to the Tetra4 “network”.
Tetra4 recently updated its reserve: 33 billion cubic feet of proven reserves equivalent to 1 billion litres of diesel. This translates to a market value of R6.6 billion or R77/share, according to a recent Venmyn Deloitte valuation.
Stefano Marani, CEO of Renergen, says the loan from the IDC will enable the company to move from a piloted, proof-of-concept phase into full-scale production.
The pipeline will connect various wellheads owned by Tetra4 to a central processing facility where the gas will be treated and then compressed ready for transport. In addition to infrastructure, the money will be spent on a large-scale drilling program that will add more wellheads to the Tetra4 “network”.
