An Australian gas explorer and developer is embarking on an aggressive exploration campaign in South Africa, starting on 19 September 2022.

Kinetiko Energy has mobilised a drilling rig to commence the drilling of a new core hole which is located 5km from Majuba Power Station, which has a 20MW gas generator awaiting a source of fuel. This will be followed by at least another 6 boreholes in both the northerly and southerly parts of the company’s rights areas before the end of the year.

“The urgent need for gas to contribute meaningfully to the energy crisis in South Africa has manifested itself in an increasing interest in the largest onshore resource in South Africa. Active players in the midstream and downstream sectors are considering gas for power, LNG, chemical derivatives and direct pipeline offtake,” commented Kinetiko CEO, Nick de Blocq.

The company’s exploration programme is restarting with a core hole planned for September 2022. KV-14C will be the closest borehole to the Eskom-operated Majuba power station (which is capable of being fired by gas) and is expected to prove the continuation of the gassy sandstone geology which has been shown to be prevalent in the area from historic exploratory work.

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Aeromagnetic surveys have illustrated strong targets for potential gassy compartments in the region, and the Company has reached an agreement with the local landowners for site access to undertake drilling during Q3 and Q4-22.

“The recent Government initiative of creating a new power supply company has brought three ex-coal fired power stations into play, which will be re-engineered to become gas-fired. There has never been a better time to have gas assets in the heart of South Africa’s energy infrastructure,” added de Blocq.

Further exploration core holes are planned on Exploration Right 272 (ER 272) near the Secunda synthetic fuel plant owned by Sasol and on Exploration Right 270 (ER 270) in the South where aeromagnetic surveys have identified the most prospective gassy compartment targets the southerly dipping geological basement is anticipated to provide deeper, higher pressured gassy sands in ER270. At least three core holes are planned to be drilled in each of ER 272 and ER 270 during the fourth quarter of 2022 or the first quarter of 2023.

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