Renergen said it had successfully intersected gas charged sandstones and fractures as predicted in the pre-drill prognosis.
It said the gas was intersected after having drilled 50m into the sandstone.
The group’s share price gained as much as 70.2 percent to R17.72 a share yesterday in early trade, up from Friday’s closing price of R10. It closed at R12.50.
The group said the team on site had been flaring the gas for initial flow testing, which reached a flow rate of 850 000 standard cubic feet a day with the valves partially closed in order to keep conditions on site safe.