Kibo makes huge gas discovery near Secunda
JSE-listed Kibo Energy has made a massive gas discovery near Secunda, north of the Free State province, following drilling expeditions close to the pipelines of Sasol, Eskom and other industrial gas users.
The discovery is believed to be more than 10 trillion cubic feet in volume – more than double the previously estimated five trillion the company reported to exploration and production activities regulator Pasa (Petroleum Agency South Africa).
Read/listen: Gas: A key solution to our electricity problems?
Speaking to Moneyweb, Nick de Blocq, CEO of Kibo-owned Kinetiko Energy, confirmed the gas discovery in its ‘272’ exploration right block (ER272), which adjoins the Secunda area and the Lilly gas pipeline that runs through to Durban.
De Blocq could not confirm the exact magnitude of the discovery due to a restraint of trade agreement.
He said the company focused its drilling expeditions in ER272 after gas exploration success in the ER271 block, which runs from the north of Amersfoort down to the south of Volksrust.
It is also close to Sasol’s Secunda pipeline network and a number of Eskom’s coal power stations.
“We entered two new exploration areas earlier this year between May and July … and I guided the company into extending the exploration into our newer areas, ER270, which is kind of a loosely shaped horseshoe around the Newcastle area and into ER272, which does abut onto Sasolburg,” he said.
Activity map showing the 272 as well as 271 and 270 exploration rights blocks. Source: Pasa
He added that a 100% hit rate has been maintained in the area, where it has 40 boreholes.
“It’s absolutely world-class in terms of the strike rate, the geographical size of the blocks, and the quality of the gas, which is up to 97%/98% methane, with only nitrogen and no nasties in it,” he said.
Meanwhile, Kinetiko Energy, listed on the Australian Securities Exchange, ordered a trading halt on the bourse on Tuesday, pending an announcement linked to a project update.
The temporary suspension for trading its shares will last until the announcement is made or when trading opens on Thursday, 17 August, the gas explorer, focused on advanced shallow conventional gas and coal bed methane across southern Africa, said.
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Source: moneyweb.co.za
