Kinetiko Energy (ASX:KKO) has been granted three Exploration Right applications covering a large and highly prospective gas area surrounding its Amersfoort Project.
PASA, the South African oil and gas regulator that controls the exploration permits, is in need of secondary energy sources to reduce its reliance on Eskom, the country's largest energy company, and is likely to continue in its support of Kinetiko.
KKO, along with its in-country partner Badimo Gas is ahead of schedule in submitting the required environmental plans, collating title deeds and consulting stakeholders, demonstrating their commitment to and optimism for the project.
A 2012 evaluation by Gustavson Associates indicated a Prospective Resource Estimate of 9.3 trillion cubic feet of gas in place over all four of KKO's granted licenses, which cover 7890 square kilometres and are prospective for gassy sandstones and gassy coal.
Kinetiko has also made two further TCP applications since, which await approval. Kinetiko and Badimo are continuing to review additional prospective land areas in the vacinity.
Even a fraction of the Gustavson estimate, if confirmed, has company making potential for $16 million KKO.
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