Kinetiko Energy, a prominent entity listed on the Australian Securities Exchange (ASX), recently announced a significant gas discovery in the vicinity of Secunda, located in Mpumalanga. This remarkable achievement came after a series of meticulously executed drilling expeditions near critical pipelines used by industrial behemoths such as Sasol, Eskom, and other major gas consumers.
While the true scope of this historic discovery had not been officially disclosed as of Tuesday, it is widely assumed to have far-reaching implications. At this time, the group has refrained from confirming the exact dimensions. Kinetiko Energy had previously projected a volume of approximately five trillion cubic feet spanning a significantly larger area in a report submitted to the Petroleum Agency South Africa (Pasa).
During interactions with the media, Kinetiko Energy CEO Nick de Blocq provided insight into this monumental achievement. He confirmed the location of the gas reservoir within the ‘272’ exploration right block (ER272), which is near Secunda and the Lilly gas pipeline, which runs all the way to Durban.
De Blocq refrained from disclosing the exact magnitude of this discovery due to a temporary trading halt imposed on the company’s shares on the ASX. A temporary halt in trading activities influenced this decision.
De Blocq explained that the success of gas exploration within the ER271 block influenced the strategic focus on ER272 drilling. The scope of this investigation extended from northern Amersfoort to the southern Volksrust area. Furthermore, the chosen location is close to Sasol’s Secunda pipeline network and several of Eskom’s critical coal power stations.
The company embarked on an expansion strategy, with drilling activities conducted across two new exploration areas between November 2022 and July of this year. This included exploration in both ER270, a loosely shaped horseshoe encircling the northern KwaZulu-Natal region, and ER272, which borders Secunda. De Blocq proudly reported a 100% success rate in these areas, backed up by an impressive portfolio of 40 boreholes.
“It is 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,” De Blocq said of the gas discovery.
In response to this historic achievement, Kinetiko Energy imposed a trading halt on the ASX exchange in order to facilitate an impending announcement regarding a project update. The trading halt will remain in effect until the announcement is formally released or trading resumes on Thursday, August 17. Kinetiko Energy, known throughout Southern Africa for its emphasis on advanced shallow conventional gas and coal bed methane, is poised for expansion.
Kinetiko Energy’s remarkable gas discovery holds enormous promise for South Africa, potentially paralleling the success of JSE-listed Renergen’s operations, particularly its helium plant in Virginia, Free State. Furthermore, as a result of significant discoveries in neighbouring countries such as Mozambique (gas) on the East Coast and Namibia (oil) on the West Coast, there is a surge of interest in gas and oil exploration along South Africa’s coastline.
