Resources & Reserves
Sproule – Independent Reserve Evaluation Report
Estimation of Natural Gas Reserves and Resources with Associated Economics of the Licenses ER 270, 271 & 272 in the Republic of South Africa.
As of July 1, 2023
Sproule B.V. an independent sub-surface consultancy based in Calgary, Canada has conducted an independent evaluation of the natural gas reserves and resources in South Africa of Licences ER270, 271 and 272 which, at the date of the proule Report, are wholly owned by Afro Energy, which is in turn held 49% by Kinetiko and 51% by Badimo Gas.
The significant highlights from the Sproule Report are:
- Afro Energy’s Gross Contingent Gas Resources (2C) has increased by approximately 20% to 6 TCF;
- Maiden gas reserve certification has been assessed over the Company’s planned 30 well pilot production cluster as part of its Industrial Development Corporation of South Africa joint venture (“SPV0 Project”) and calculated to deliver positive economics. The SPV0 Project is to be located in a cluster of wells covering approximately 6.8km2 which forms
0.2% of the granted rights and prospective geology; and - In addition, 5.8 TCF of Prospective Resources (2U) has been certified on the two exploration rights where exploration work is continuing (ER 270 and ER 272).
| Summary of Net Gas Reserves for ER 271 Gas Field Development Project (Net – 49%) | ||||||||
|---|---|---|---|---|---|---|---|---|
| PDP | PDNP | PUD | Total Proved (1P) | Proved + Probable (2P) | Proved + Probable + Possible (3P) | |||
| Gas (MMCF) | 0.0 | 321.1 | 1,605.5 | 1,926.6 | 3,149.5 | 4,923.2 | ||
| Summary of Net Gas Reserves for ER 271 Gas Field Development Project (Gross) | ||||||||
| PDP | PDNP | PUD | Total Proved (1P) | Proved + Probable (2P) | Proved + Probable + Possible (3P) | |||
| Gas (MMCF) | 0.0 | 655.3 | 3,276.5 | 3,931.8 | 6,427.5 | 10,047.4 | ||
* The Company notes that the Gross figures listed in the table above represent Afro Energy’s 100% interest in the exploration rights whereas Net figures relate to Kinetiko’s 49% economic interest in Afro Energy. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both a risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially recoverable hydrocarbons.
