Kinetiko Energy (ASX: KKO) continues to lock up prospective acreage adjacent to its Amersfoort Project in South Africa with its application for a fifth technical cooperation permit.
The new 2394 square kilometre permit is located west of the 1601 square kilometre Amersfoort, which is located close to gas demand centres and existing infrastructure.
Amersfoort has existing in-place gas of 1.7 trillion cubic feet (Tcf) while the four recently awarded technical cooperation permits in the area, which cover 7911 square kilometres, have prospective in-place gas resources of 9.3Tcf.
Technical cooperation permits entitle Kinetiko 12 months to perform desktop studies and the unique right to apply for exploration rights over the area they cover. It also gives the company the right to access exploration data held by the regulatory authorities.
The permits are located in the Karoo coal basin areas, which are highly prospective for commercial accumulations of coal seam gas.
Amersfoort
In addition to its proximity to gas buyers and infrastructure, Amersfoort is also well covered with more than 800 existing coal exploration drill holes, giving it a strong database to identify potential hot spots.
The high permeability of the coals also means that Kinetiko will not need to fracture stimulate its wells, lowering the cost of production.
Exploration to date has also uncovered signs of conventional gas potential which has not being assessed.
Kinetiko plans to drill 4-8 pilot production wells and 15 exploration holes from the current quarter and up to 3 pilot production wells next year to establish reserves at Amersfoort.
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