Kinetiko Energy’s (ASX: KKO) South African projects have been identified as a major coal seam gas play by an independent United States-based oil and gas consultant.
In the assessment of Kinetiko’s three Technical Cooperation Permit (TCP) applications in South Africa, Gustavson and Associates estimated a Gas Initially In Place Resource of 10.7 trillion cubic feet and a Contingent Resource of 6.9 trillion cubic feet.
This is in addition to Kinetiko’s existing Amersfoort Project, which has estimated Gas In Place fo 1.7 trillion cubic feet and a Contingent Resource of 1.1 trillion cubic feet.
Kinetiko has four TCP applications in the works, covering 8,038 square kilometres of prospective coal seam gas land.
The company expects these applications to be approved in coming months. Once granted, the TCPs will give Kinetiko access to Government data, as well as the exclusive right to apply for and be granted an Exploration Right over the same area.
Amersfoort exploration
Kinetiko is continuing exploration at the Amersfoort and Volksrust tenements, with drilling of 16 holes expected to be completed by mid-2012.
A review of gas resource on the Amersfoort Project, also by Gustavson and Associates, is underway with results expected in six weeks.
Planning and procurement for the next drilling program, which will comprise up to eight pilot production wells at Amersfoort, is well advanced.
Regulatory applications for the approval of the well design, sites and operational procedures have been submitted to South Africa’s Petroleum Agency, and drilling will commence in mid-2012
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