Hey! To fill in the gap before we get the Sproule reserve update, let’s recap some new insights from the August 2021 investor update that haven’t been discussed that much yet.
Here is the link again: https://drive.google.com/file/d/1wL5YVVIQ6XEIwQNTeKvIvZ-9vWKVfKU0/view
Drilling:
- Renergen uses an algorithm for drilling that has proven to have a 100% success rate (on 5 drills) so far - the only duster was drilled without that algorithm (slide 6)
- this is significant and has the potential to save them a lot of money since they plan to drill 290 additional wells for a phase II (slide 16)
- drilling for up to 40 of these wells might be funded through the new Renergen token (slide 19, see also below)
Plant:
- only one remaining batch to be shipped
- pipeline completed and tests have shown that it is more efficient than expected(slide 6)
Funding:
- for helium Renergen has contacts and agreements for Phase I and II with worldwide players from the US (US government, Messer LLC), Europe (Linde, ISI Automotive, the Messer holding is European) and Russia (Helium24) - so while it may not be on the radar of many investors outside SA and Australia, it definitely is on the radar of companies all over the world
- for LNG Renergen is not only looking to supply the transportation industry (trucks, together with Total) but also the manufacturing industry (see agreement with Consol glass)
- Renergen might generate future revenueswith Cryo-Vacc by renting out the cooling equipment to logistics providers etc. (contractual model saves customers upfront capex) - since the mRNA vaccine technology and thus the need for ultra cold storage solutions is likely here to stay (not to mention the COVID pandemic 
), this revenue stream might become significant mid-term (https://ysph.yale.edu/news-article/the-application-and-future-potential-of-mrna-vaccines/) - looking forward to see how it plays out in the years to come
- the planned USD 25 million fund raise through a Renergen coin/token (i.e., pre-selling helium that Renergen will later sell at spot prices) is actually supposed to avoid dilution of existing shareholders, since it’s not a capital raise, but a pre-sale of the product (see sliders 19 et seq.)
- if Renergen manages to fund up to 40 drills with the new instrument, maybe by the time finding is needed for additional wells we already have revenues from Cryo-Vacc for further wells
- since this would be the first token of its kind, Renergen will likely get a lot of public attention - free of charge (what I mean that as far as I know tying a commodity price to a Blockchain-based token plus creating a spot market at the same time has not been done yet - I understand that while the Petro, AABBG and the like are existing commodity backed tokens, they are linked to an already existing spot market of the underlying commodity)
Looking forward to see the details of this!
And I note that together with the zero emission LNG truck cooling system and Cryo-Vacc this is the third meaningful - and possibly disruptive - innovation generated by the company within a year!
Again confirming that - while we are still in a very early and risky phase - Renergen is not your average junior explorer (compare it to other helium players and you will see what I mean)…
(20min delay)