The Joint Venture
- Afro Energy (a subsidiary of Kinetiko Energy Ltd) has entered into a joint development agreement (“JDA”) with the Industrial Development Corporation of South Africa (“IDC”).
- The IDC is a wholly owned subsidiary of the South African government mandated to promote economic growth and industrial development in South Africa.
- JDA to develop around 20 gas fields to produce gas for industrial, commercial, transportation or power generation applications.
- Kinetiko has secured a subscription of ZAR$10m from South African energy investment group, Phefo Power.
- Investment group stakeholders comprise leading South African oil and gas executives.
- The subscription substantially bolsters the Kinetiko Black Economic Empowerment (BEE) certification.
The project is strategically located in a region characterised 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.
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.