Kinetiko Energy, a company focused on gas exploration in South Africa, has announced that it has acquired the full ownership of its joint venture partner, Badimo Gas, in a share deal. The acquisition gives Kinetiko the sole rights to the Amersfoort gas project, which is considered to be one of the largest onshore gas fields in the country.
The Amersfoort project covers two exploration areas, ER38 and ER56, where Kinetiko has drilled several wells and found gas in both sandstone and coal formations. The company claims that the gas flows spontaneously to the wellhead and has the potential to develop a significant gas production field.
Kinetiko’s executive chairperson, Adam Sierakowski, said that the merger with Badimo would unlock value by de-risking the project, opening access to additional funding and corporate opportunities, and providing operational and development efficiencies. He also welcomed two nominee directors from Badimo, Donald Ncube and Robert Bulder, to the Kinetiko board.
The acquisition comes at a time when South Africa is facing an energy crisis and is looking for alternative sources of power. The country relies heavily on coal-fired power plants, which are plagued by breakdowns, maintenance issues, and environmental concerns. The government has recently approved a plan to procure 2,000 megawatts of emergency power from independent producers, some of which will use gas as fuel.
Kinetiko has already started a gas-to-power program at the Amersfoort project, using existing wells to produce gas to an in-field, containerised generator linked to the existing grid. The company said that the first phase of commissioning and testing would target one megawatt of output at the project.
The company also plans to use a technology called Cryobox, which freezes the gas and turns it into liquid for easier transportation and supply. Kinetiko has formed a joint venture with the Industrial Development Corporation (IDC) of South Africa to drive this initiative, which aims to produce 15,000 tonnes of liquefied natural gas (LNG) per annum.
Kinetiko said that it was confident that its gas project would contribute to the energy security and economic development of South Africa, as well as reduce its carbon footprint. The company said that it was working with the Petroleum Agency of South Africa and other stakeholders to ensure the compliance and sustainability of its operations.
Source: Mining Weekly
