Renergen (ASX:RLT) share price explodes 71% today

The Renergen share price is currently up a whopping 71%. We review Renergen's latest announcement for some insight into this massive leap.

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Renergen CDI (ASX: RLT) shares are on fire today. At the time of writing, the Renergen share price is trading at $2.62, up by 71%.

Renergen is an alternative and renewable energy business concentrating on helium and LNG. The company invests in early stage projects across Africa and emerging markets.

The company's key focus, the Virginia Gas Project, is located in Free State, South Africa and contains one of the richest helium concentrations recorded in the world.

Let's take a look at what the company has been up to recently and try to piece together the path that led to the Renergen share price soaring today.

Phase 2 of the Virginia Gas Project

This is the second time in the past two days that the Renergen share price has blasted off. On Wednesday, we were talking about Renergen shooting 24% higher following an announcement pertaining to phase 2 of the Virginia Gas Project.

The announcement revealed Renergen had contracted three companies to support the engineering studies of the project.

Saipem SpA is now responsible for the front-end engineering design (FEED) contract to develop the liquid natural gas and liquid helium processing facilities. EPCM Holdings will develop the phase 2 gas gathering pipeline, and Sproule will evaluate and certify the reserves.

The appointment of these three contracts will finalise the feasibility studies for the phase 2 development of the Virginia Gas Project.

With no new announcement today and the three new contract appointments having only come to light two days back, it looks like investors are still processing the news.

As mentioned in Renergen's latest announcement, under the guidance of the three appointed companies Renergen expects the Virginia Gas Project feasibility studies to be completed "on or around" the second quarter or 2021.

After this is complete, the Renergen board will present its final investment decision.

What has the Renergen share price done over the past 12 months?

The Renergen share price has a 52-week range of 84 cents to $2.90, a touch away from where it's trading today

Similar to many other companies, Renergen took a hit from the coronavirus and operations came to a dramatic halt, which sent the share price for a nose dive.

From 3 March to 24 March 2020, Renergen shares tumbled 88.5%, falling from $1.64 to 87 cents.

All in all, the Renergen share price has climbed around 140% over the previous 12-month period.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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