Emerging coal-bed methane (CBM) developer Sunbird Energy was fully funded to start exploration work on its two flagship projects in South Africa, following its successful initial public offering (IPO) at the end of last year.

MD Will Barker tells Mining Weekly that the IPO had closed early after being oversubscribed and that Sunbird, which will be attending this year’s Investing in African Mining Indaba that takes place in Cape Town from February 6 to 9, raised some A$9-million through the issue of 45-million shares, which will be listed on the ASX.

He said that along with Sun-bird’s broking partner, Cygnet Capital, and African partner, Umbono Capital, the company had been able to accumulate a valuable CBM asset portfolio and put together an experienced team.

“We are focused on becom-ing the leading CBM company within Southern Africa. We see the opportunity to replicate the success that CBM has had in other parts of the world with our experience gained in Australia and the US,” said Barker.

“We see the opportunity to build on our portfolio of assets throughout the region to create a leading asset base that provides us with exposure to differing geological terrains and market opportunities.”

Sunbird’s first point of focus in 2012 would be to start explor-ation on its Ermelo asset, some 200 km from Johannesburg.

“What we are doing now is continuing our discussions with the local community and landholders, in partnership with Umbono and, once that has been completed, we will proceed with drilling in the Ermelo region.”

Barker said, initially, around six core holes would be drilled at Ermelo during the first half of the year. The project area has been the subject of numerous previous drilling campaigns by previous coal explorers, and Barker noted that Sunbird was already familiar with the geology at the site. The project area was also well situated close to existing infrastructure.

The latter half of the year would be focused on the Mopane project, in the Limpopo province, where Sunbird would be drill- ing another six core holes. Barker noted that the Mopane project offered a large resource with a multitrillion-cubic-foot resource potential, which could support a large-scale power generation project.

“At the same time, we are also doing desktop and geological work to determine core locations in our remaining projects for the latter half of the year.

“Our ultimate aim is to be the industry leader in the CBM market in Southern Africa, and the focus for investment in the sector,” Barker said.

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