Project Profile
Value: Undisclosed
Location: Free State province, 250km southwest of Johannesburg, South Africa
Reserves: 1P at 9.2 Bscf, 2P at 23 Bscf, 3P at 83.7 Bscf and contingent resource at 652 Bscf
Proven reserves: 32.41 bcf (917.8 mcm) (October, 2016)
Area: 187,000 hectare Helium/NG field
Molopo\'s Virginia Gas Field project is located in the Free State province of South Africa, some 250km southwest of Johannesburg. The project covers a vast area where gas emitting boreholes have been identified from mineral exploration. Molopo\'s current interest in this project is 80% after the Black Economic Empowerment commitments and the South African Government\'s back-in participating interest obligation are met in accordance with the terms of the expected Production Right.
Exploration work and production monitoring activities continued throughout 2011 in support of Molopo\'s Production Right application submission to the Petroleum Agency of South Africa (PASA), lodged over an initial 0.2 million acres with the final area being determined to 750,000 acres. The Production Right application has been accepted by PASA and granting of the Production Right is anticipated in the near term.
Reserves independently certified by MHA Petroleum Consultants LLC who has consented to the inclusion of the form and content of the reserves and resources information. According to this analysis the reserves are: 1P at 9.2 Bscf, 2P at 23 Bscf, 3P at 83.7 Bscf and contingent resource at 652 Bscf. Gross certified reserves have been reduced by 20%, representing BEE participation and government back in rights. Molopo has a gas sales agreement with Novo Energy for the initial sale of approximately 600,000 standard cubic feet per day (cf/d) of gas for CNG (Compressed Natural Gas) for use in vehicles. Novo also have first right of refusal to purchase additional gas up to 8,200,000 cf/d. Work on the infrastructure required to fulfil the terms of this agreement from both parties will commence upon receipt of the Production Right. This gas sales agreement is under re-negotiation. Molopo has received an updated reserves certification for the Virginia Gas Field, which certified Molopo\'s first proved gas reserves for the region (11.5 Bcf 1P on a 100% basis).
The Free State Helium and NG field enjoys concentrations of up to 3-4% by volume.
The Helium Plant (designed by Linde Engineering)
Linde’s high-tech extraction technology will separate Helium from NG through a single system utilising a patented processing plant which purifies, compresses, liquefies and stores the Helium, ready for distribution to customers.
The Linde plant reduces the energy needed and cuts CO2 emissions of traditional Helium from NG extraction processes and represents the latest in engineering technology advances. The plant is of modular design and will be precision manufactured in Europe before being shipped to the Free State for fast and efficient construction. The Helium plant is expected to commence operations in 2018/19.
Operators:
Molopo Energy (a subsidiary of Renergen): Operator with 80% interest
South African Government: 20% interest
Afrox (a subsidiary of The Linde Group): Operator of the Helium plant and market the helium
TETRA 4 (a subsidiary of Renergen)
Contractors:
MHA Petroleum Consultants LLC: Consultancy services (reserve estimation analysis)
Linde Engineering: To design and deliver the Helium plant