Kinetiko Energy Ltd (ASX:KKO) has passed another key milestone on the road towards commercial production and helping satisfy the growing energy needs of South Africa with renewals granted on two key exploration tenements.
The Petroleum Agency of South Africa (PASA) has granted Afro Energy, a subsidiary of the Australian gas explorer and developer focused on advanced shallow conventional gas and coal bed methane in South Africa, the renewals for two years.
This is for Exploration Rights 270 and 272 which cover an area of about 3,135 square kilometres.
Exploration Rights 270, 271 and 272 and exploration activity.
Supports work programs
These areas represent a substantial portion of Kinetiko’s exploration rights and support the majority of its planned exploration activities in 2023.
The renewals support the company’s approved work programs to accelerate exploration.
In a statement, Kinetiko said: “Following the Minerals and Petroleum Resources Development Act of 2002 (MPRDA) Section 81:(4), under which the company is entitled to continue with exploration and appraisal operations, the renewals granted are for the first of potentially three renewal periods of two years.”
In the near future, Kinetiko intends to apply for production rights over these exploration rights with would be valid for an initial period of 30 years.