Project Profile
Location: Eastern Transvaal Coal Field, between Johannesburg and Durban, South Africa
Reserves: P50 GIP of 1.7 Tcf and P50 2C Contingent Resources 655.7 bcf
Start-up Year: -
Kinetiko in conjunction with leading South African coal geology consultants conducted an evaluation of all the South African coal basins for CBM potential. The Amersfoort area of the Eastern Transvaal Coal Field between Johannesburg and Durban was identified as one of the most prospective areas with well-documented gassy coal measures. The area is also at the heart of South Africa’s existing energy and power generation infrastructure and within close proximity to major industrial, mining and manufacturing areas. Kinetiko has acquired a 49% interest in 2 onshore gas licences covering 1,800km2 in the Amersfoort area under a farm-in agreement with a South African private company Badimo Gas. Under the terms of the agreement Kinetiko will spend US$4 million on exploration. Kinetiko will be the operator and will manage the exploration programs. Subsequent exploration and development expenditure will be met by the companies in proportion to their interest in the licences.
The Amersfoort Project is located in the Eastern Transvaal within the coal bearing region of Permian coals that has been supplying a significant portion of Southern Africa’s energy needs for over a century. Gustavson Associates have completed an independent estimate of coal bed methane resources on the Amersfoort license areas for Badimo Gas Gustavson calculate a P50 Gas In Place (GIP) resource for Badimo’s Amersfoort tenements of 1.7 Tcf and P50 Prospective Resources of 1.12Tcf. Based on the observation of spontaneous gas emissions from coal exploration holes in the Amersfoort area Gustavson also note that conventional gas accumulations associated with CBM resources such as in the San Juan Basin (USA) can add substantially to the gas produced.
Amersfoort project already has a significant CBM resources estimated. The abundance of existing coal exploration drill holes means there is limited need for drilling to define coal distribution in greater detail. Exploration will commence with core drilling to recover core from well defined coal sequences for CBM desorption testing and rapidly progress to site selection for production test wells. Completion of production test wells in tandem with commercialisation studies will then enable the certification of reserves for the project.
Operators:
Afro Energy (owned by Kinetiko Energy ): Operator with 49% interest
Badimo Gas: 51% interest
Contractors:
Gustavson Associates: Feasibility studies