In a groundbreaking development, Kinetiko Energy, a prominent entity listed on the Australian Securities Exchange (ASX), has achieved a momentous gas discovery in close proximity to Secunda, situated in the Mpumalanga region. This landmark achievement comes on the heels of meticulous drilling expeditions conducted in the vicinity of key gas pipelines utilized by Sasol, Eskom, and other industrial gas consumers.
The magnitude of this discovery is nothing short of astounding, estimated to exceed a staggering 10 trillion cubic feet in volume. This figure is more than twice the earlier estimate of five trillion cubic feet that had been reported to the Petroleum Agency South Africa (Pasa) responsible for overseeing exploration and production activities. However, the precise extent of this discovery remains undisclosed as of Tuesday.
This Marks a Significant Milestone for the Company and for South Africa
Nick de Blocq, the Chief Executive Officer of Kinetiko Energy, confirmed this remarkable gas discovery to Moneyweb. The discovery was made within the ‘272’ exploration right block (ER272), which is contiguous with the Secunda area and the Lilly gas pipeline, an artery extending all the way to Durban.
De Blocq, though unable to provide an exact measure due to a restraint of trade agreement, emphasized that the company had concentrated its drilling efforts in ER272 following a triumphant gas exploration campaign in the ER271 block. ER271 extends from the northern town of Amersfoort to the southern reaches of Volksrust. This strategic location places it in close proximity to Sasol’s Secunda pipeline network and several of Eskom’s coal-fired power stations.
De Blocq elaborated on the company’s strategic expansion: “Earlier this year, between May and July, we initiated exploration in two new areas—ER270, which encircles the Newcastle region in northern KwaZulu-Natal, and ER272, which directly adjoins Sasolburg.” The CEO underscored the area’s impeccable record, having achieved a 100% success rate across 40 boreholes.
A key aspect of this discovery’s distinction lies not only in its scale but also in its exceptional quality. The gas composition boasts an impressive methane content of up to 97% to 98%, with negligible nitrogen presence and no undesirable components.
Meanwhile, Kinetiko Energy has taken a proactive step by halting trading of its shares on the ASX bourse. This suspension, effective until an announcement linked to a project update is made or trading resumes on Thursday, 17 August, underscores the gravity of the company’s progress.
The newfound gas reserves by Kinetiko Energy hold the promise of significantly enhancing South Africa’s gas potential, joining other endeavors such as Renergen’s noteworthy helium plant in Virginia, Free State. The Free State project, led by Renergen, continues to attract global attention and investment despite being in its nascent stages.
Simultaneously, the allure of gas and oil exploration along South Africa’s coastline gains momentum, mirroring discoveries in neighboring nations like Mozambique (gas) along the East Coast and Namibia (oil) along the West Coast.
This revelation by Kinetiko Energy represents not only a substantial stride for the company but also a pivotal moment for South Africa’s energy landscape. As the nation continues to navigate its energy needs and seek sustainable solutions, this gas discovery stands as a testament to the potential of indigenous resources in driving progress and prosperity.
Source: Moneyweb News
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