Kinetiko Energy Ltd (ASX:KKO) has had a strong day on its reinstatement to official ASX quotation having demonstrated compliance with listing rule 12.2 and has traded in the range of 2.1 to an impressive 4.0 cents before closing at 3.9 cents.
The Perth-based South African-focused exploration company is developing the Amersfoort Project in South Africa as a standalone onshore gas producer.
Renewed exploration rights
During the March quarter, South African regulator Petroleum Agency of SA (PASA) renewed Kinetiko’s existing exploration rights and granted three further exploration rights -ER270, ER271 and ER272 – increasing the company’s total exploration rights by 378%.
The project, which now totals 4,604 square kilometres, is 150 kilometres from Johannesburg in the heart of the country’s existing gas and power transmission infrastructure.
A work program has been approved by the South African Government to progress the development of an initial 20-well pilot production gas field.
Advanced negotiations are underway with two major South African institutions to fund the development, which could be producing in 12 months from commencement according to historical gas flow results.
Kinetiko has continued to promote the potential of the Amersfoort project to be developed as a standalone onshore gas producer in a country that continues to be subject to constrained consistent and affordable energy.
Pathway to production
The company has formulated a pathway to production that includes rapid development plans.
Advanced negotiations are underway to fund and commercialise a pilot gas production field while the company is engaging with several South African energy institutions and utilities.
The current approved exploration program is fully funded for the next 12 months-plus after KKO received strong support for an entitlement issue undertaken during the March quarter with $1,282,718 raised.
There has been approximately A$10.3 million spent to date on the project, which has significant upside with only 15% of prospective geology tested.
The project is conducted by KKO through Afro Energy and its co-shareholder Badimo Gas.
Published at Mon, 18 May 2020 06:42:00 +0000-Kinetiko Energy has strong day on reinstatement to official ASX quotation