Renergen merger advances, exploration uncovers new drilling targets

Renergen Limited (JSE:REN) has reported substantial progress in its merger with ASP Isotopes (ASPI), with all scheme conditions now fulfilled. The deadline for remaining offer conditions precedent has been extended to November 28, 2025, to accommodate regulatory approvals. The company also reached a financial and coexistence settlement with Springbok Solar Project, formalizing a framework for constructive operations and avoiding further litigation.

The company's operational performance for Fiscal Q2 2026 saw LNG production decrease to 987 tons from 1,311 tons in the previous quarter, attributed to brought-forward planned maintenance. Helium operations were not run to reduce operating costs. Exploration efforts continued with R36.1 million spent on drilling and analysis. Tetra4 acquired additional Vertical Seismic Profiling (VSP) data, leading to the identification of thirteen new drilling targets.

Financially, Renergen reported a net cash outflow from operating activities of ZAR56.163 million for the quarter, with total relevant outgoings of ZAR92.268 million. Cash and cash equivalents at quarter-end stood at ZAR163.064 million, providing an estimated 1.77 quarters of funding. The company is in advanced discussions to raise additional funding to meet its needs and expects to continue operations.