- The Australian Stock Exchange has announced that the securities of Kinetiko Energy Limited (‘KKO’) will be placed in trading halt at the request of KKO, pending it releasing an announcement on Monday. Read more
- Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Thursday, 17 August 2023 or when the announcement is released to the market.
- Kinetiko Energy is expected to announced a very large gas discovery near Secunda, in the province of Mpumalanga, South Africa.
- The discovery is believed to be more than 10 trillion cubic feet in volume.
Last month Kinetiko CEO, Nick de Blocq, commented:
”Our trailblazing success in Block ER272 is set to continue with the addition of two more exploration core holes between the first pair and the most recent pair of successful core holes. Our fifth and sixth core holes are underway and we have every reason to expect similar successes. With our new proven gas fields being within reach of no less than four major infrastructural facilities (HV gridlines, Tutuka Power Station, national gas pipeline (Lily-1) and the largest regional liquid fuels manufacturing facility at Secunda – SASOL) geographic location and our choices of core holes are obviously strategic.
We also continue to plan our large-scale field developments, starting in Block ER271, which will kick off five appraisal/production wells being drilled from September 2023 to find the sweetest spots to the west of Volksrust around which to develop fields to produce as part of the Company’s joint venture with the IDC”
Image credit: Kinetiko Energy
In April last year, Afro Energy, an arm of Kinetiko Energy and the Industrial Development Corporation (IDC), a state owned development finance institution in South Africa, signed a joint development agreement (JDA) to co-invest in the production and exploration of gas at approximately 20 wells in Amersfoort, in Mpumalanga, a province in South Africa.
Investment and development will be carried out under the conditions of the JDA with the help of a special purpose vehicle, the Afro Gas Development SA (AGDSA). The IDC will make an investment of R70 million, or over 45%, in the AGDSA project, whereas Afro Energy will contribute R85 million, or around 55%, to explore and begin production of approximately 500 million standard cubic feet of gas per year in South Africa.
Author: Bryan Groenendaal
