Kinetiko Energy Ltd (ASX:KKO) has been given final South African consent and regulatory approval for its acquisition of Afro Energy (Pty) Ltd.
KKO is now free to complete the acquisition, after the Director-General: Department of Mineral Resources and Energy in South Africa consented to the transfer of a controlling interest in Afro Energy – a holder of exploration rights and applications totalling approximately 7,000 square kilometres with a certified gas resource (2C) of 4.9Tcf.
The acquisition gives KKO 100% of the 2C (P50) 4.9Tcf gas resource.
KKO is a gas explorer focused on advanced shallow conventional gas and coal bed methane (CBM) opportunities in rapidly developing markets.
Last regulatory approval
“Kinetiko welcomes this support as this Ministerial consent represents the last regulatory approval required to complete the merger transaction and the company will now proceed to seek approval from our shareholders,” Kinetiko executive chairman Adam Sierakowski said.
“We continue to aggressively progress our exploration and development plans with flow rate testing progressing at our Korhaan well cluster with dewatering and gas flow operations underway.
"This is continuing as the company advances in its joint venture with Vutomi Energy to commence gas production and commercialisation.”
First energy sales
KKO is working with Vutomi Energy on the development of its first commercial gas production initiatives, with the joint venture completing preparation to transport its 1 MW gas-to-power generator to the Amersfoort site as the final power production agreements are being finalised.
The JV with Vutomi Energy sees it looking to produce and sell electrical energy to third party private sector off-takers.
Vutomi is a Level 1 B-BEEE Independent Power Producer (IPP) based in Mbombela, South Africa, that aims to be a leading independent energy supplier in Sub-Saharan Africa and to develop clean, renewable energy projects in emerging markets and empower developing country populations with sustainable power.