Kinetiko Energy Ltd (ASX:KKO) welcomes the grant of a new consolidated Exploration Right ER271 by the South African Government covering three previous Exploration Rights and totalling 1,287 square kilometres for its flagship Amersfoort Gas Project.
This consolidation was sought by the company in a bid to expedite and streamline the application for Production Rights over the entire Amersfoort region.
Promisingly, with exploration drilling and pilot production scenarios underway, the consolidation of ER271 is a key step towards improving the economics of the Amersfoort Project and advancing production to feed an energy-hungry nation.
Consolidated Exploration Rights
Kinetiko along with its subsidiary Afro Energy Pty Ltd had made an application to consolidate three of its contiguous exploration rights, ER56, ER271 and ER38, in the Amersfoort region following consultation with the Petroleum Agency SA (PASA).
The application process took many months and required new environmental approvals to be obtained before being approved by PASA and recommended to the Department of Mineral Resources and Energy (DMRE).
Notably, the consent to the application sought from the Minister of Mineral Resources and Energy was granted in a letter dated August 19, 2021.
The new consolidated ER271 with existing wells and the Lily pipeline.
This illustrates the ongoing strong relationship Afro has with South African regulators and ministries towards the development of the Amersfoort Gas Project.
Exploration drilling planned
Afro has drilled 28 exploration and pilot production wells, with gas recoveries, and has further planned exploration drilling for another three wells.
ER271 is near significant existing energy infrastructure including the Lily gas pipeline, Majuba power station, Arcelor Mittal smelter and Eskom electricity network intersecting and adjacent to the consolidated area.
Afro will now apply for the one Production Right covering the new ER271 area at the Amersfoort Region.
- Ephrems Joseph