The Joint Venture
Kinetiko Energy Limited (ASX Code: KKO) is an Australian company in the energy exploration business, solely focused on advanced sandstone gas and coal bed methane (CBM) exploration and commercialisation in an energy challenged Republic of South Africa.
The flagship Amersfoort project and newly granted adjacent exploration rights are held through a South African joint venture company Afro Energy (Pty) Ltd. Kinetiko Energy holds a 49% economic interest and a 50% control interest in Afro Energy.
The project is strategically located in a region characterized by:
- Existing infrastructure, power generation, gas pipelines, high voltage transmission lines, road and rail.
- Very high energy demand be it gas for power generation, industrial or mining applications.
Past exploration on Exploration Rights ER38 and ER56 and commercialisation studies have proven up the project geology and the potential for commercialisation.
The drilling and flow testing of wells on ER 38 and ER 56, has established a 2C (P50) Contingent Resource of 1.554 Tcf (Gustavson Associates 2015) across these two Exploration Rights totalling 1,027km2.
With the granting of a further 3,577km2(ER 270,271 and 272) and a further 2,394km2 pending (ER320), gives the project
a total exploration footprint of 7,000km2.
KINETIKO ENERGY holds 49% & BADIMO GAS 51% economic interest in Afro Energy (Pty) Ltd.
Afro Energy (Pty) Ltd holds 100% Exploration Rights :
ER 038 | ER 056 | ER 270 | ER271 | ER 272 | ER 320 (pending)
KKO through its shareholding in Afro Energy will continue to work with South African stakeholders and regulators to advance Amersfoort to the next stage of commercialisation.
Gas in now deemed to be an important component of the South African energy mix to combat the energy crisis.
Over the next 12 months, the focus will be the achieve first reserves, production and revenues.