PERTH (miningweekly.com) – ASX-listed Kinetiko Energy has announced a maiden gas reserve of 3.1 BCF over its pilot gas production field in South Africa.
An independent gas reserve and resource report has also resulted in a 20% increase in the 2C contingent resource to 3 TCF over the company’s’ granted exploration rights, with the expectation of further significant upgrades from adjacent application exploration rights.
“This is one of the most significant and exciting moments in Kinetiko’s corporate journey to date in South Africa. It should be well understood that the maiden gas reserve was issued on the basis of a very small project. The area considered is minute by comparison to our overall geography (about 0.2%) and yet the economics work out to be substantially positive with 2P certification for the project at about 6.4 BCF of gas,” said CEO Nick de Blocq.
“Each time Kinetiko adds commercial production plans within its exploration rights, it will be able to grow reserve certifications by eventual orders of magnitude, with assumptions based on increasingly positive economics driven by deeper wells in the south with potentially higher flow rates, and larger gas contents and better geophysical properties of the sediments to the north,” he said in a statement on Monday.
“The company also requested an updated resource assessment due to the results and consistency of recent exploration. The new resource assessment has reflected the upside of the sand-driven gassy reservoirs and returned a substantial 20% increase in 2C contingent resources to just over 6 TCF. It has also added a similar level of prospective resources which will move into the contingent category as further exploration confirms the geological potential.”
The report certified 5.8 TCF of prospective resource on the two exploration rights where work is continuing.