nice write up after hours from one of my subscription...

nice write up after hours from one of my subscription services...hopefully more new buyers come on board to counteract the negative influence of the CMC Capital bot....
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Renergen soars on helium outlook

While we’re on the topic of gas, I obviously have to mention Renergen Ltd [ASX:RLT]. Our South African-based natural gas and helium explorer.

Because if you haven’t already noticed, this stock has gone nuts in recent weeks. With the good performance relating largely to some simply incredible concentrations of helium in their test drilling over the course of last month.

Take their latest results from 29 March for instance. Renergen announced that two wells (MDR1 and P007) produced concentrations of 3.15% and 4.38% respectively.

For context, as Renergen CEO Stefano Marani told Moneyweb, the world’s leading helium producer — the US — only reaches concentrations of 0.35%.

Showcasing just how much of a resource they may be sitting on. Setting them up to become a formidable supplier.

Plus, with a 90% increase in flow rate for the MDR1 well, Renergen is pumping out a lot more product now too. Reaching 164,000 cubic feet or production per day.

So, if concentrations across the entire Virginia project retain these high levels, and flow rates keep increasing, Renergen will be laughing all the way to the bank.

Furthermore, it’s clear that potential customers are taking notice. With Renergen announcing this morning that it has inked its first helium deal. Agreeing to sell their gas to an undisclosed automotive supplier.

And while we may not know who, or how big this customer is, Marani made sure to infer that it is a sizeable one. Offering this quip in the announcement:

‘What really excites the team about this sales agreement is that from 2024, if you purchase a German premium brand vehicle, the overwhelming probability is that Renergen’s helium will be powering the airbags keeping you safe.’

Quite the claim to make, and quite the win for this emerging helium and gas producer.
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VWAP today - $2.827
We closed at $2.75.

Maintain your conviction as more price sensitive announcements are imminent.