Kinetiko Energy (ASX: KKO) has the potential to expand the company's coal bed methane exploration footprint to over 9500 square kilometres in the Amersfoort area of the Eastern Transvaal in South Africa - after the latest application.
Kinetiko only hit the ASX boards in July this year after a successful IPO, and has now made its third successful application of prospective land.
The latest application covers almost 1900 square kilometres, which is undergoing assessment and a Petroleum Agency of South Africa (PASA) decision on whether it shall be granted is due within 3 to 6 months.
If granted, a Technical Commercial Permit entitles the holder the exclusive right to apply for and be granted an Exploration Right for the same area.
These applications have the potential to add to the company's existing operations, which includes a joint venture with local partner Badimo, which has previously received approval from PASA.
The joint venture is aiming to commercialise coal bed methane exploration rights in the Amersfoort area, which is one of the biggest and geologically well understood within the country.
Diamond core drilling will kick off later this month and is forecast to be completed early December, with the company having the option to add a second diamond rig to expedite the drilling program.
The project is strategically located close to the major population and manufacturing centre of Johannesburg, and is surrounded by a major portion of the country's energy generation infrastructure and the coal and gas to liquid fuels industry.
Boosting the prospectivity of the area, the historic underground colliery operations are 10 kilometres from the town of Amersfoort which has indicated gas contents and coal seam conditions.