Kinetiko Energy (ASX: KKO) has received a renewal of its Volksrust tenement in South Africa, allowing it to start a coal seam gas exploration drilling program this month.
The campaign will be carried out by the existing rig and experienced crew that have just finished a successful campaign on Kinetiko's nearby Amersfoort tenement.
Kinetiko plans to drill 8 exploration holes on Volksrust in third quarter of this year, bringing the total number of holes it will drill to 16.
It added that while exploration drilling is being carried out on Volksrust, it will start drilling 8 pilot production wells at Amersfoort, more than double of what it had originally planned.
Kinetiko was required to relinquish 20% of the less prospective Volksrust area, leaving it with a combined Amersfoort and Volksrust tenement area of 1601 square kilometres.
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