SOUTH AFRICA – Australian gas explorer Kinetiko Energy has announced that Afro Energy has received approval to produce specified amount of gas annually for a 2-year period from the Amersfoort Project exploration rights ER56 and ER38 from the government of South Africa.

”Kinetiko, through its 49% economic interest in Afro Energy has accomplished another major milestone towards achieving its vision of becoming the largest on shore gas producer in South Africa. The approval to produce and sell gas enables the company to fast track pilot field gas production which has the potential to deliver first certified gas reserves and revenues, says Adam Sierakowski, Kinetiko Chairman.

The company has identified a further 20 gas compartments across the Amersfoort Project from recently completed and interpreted aeromagnetic surveys.

 Existing pilot production wells and each of the recently identified gas compartments has the potential to host gas production wells which provides the company with extensive alternatives to target pilot production wells adjacent to existing energy Infrastructure and markets

The approval entitles Afro Energy to produce gas and dispose of up to 500 million standard cubic feet (mmscf) of gas per annum for a two-year period.

 Afro Energy may also apply for additions to or extensions of the current approval given.

The company also intends to apply for a full gas production right following the completion of successful pilot gas production and commercialisation testing enabled from the current approval.

Short term gas production in South Africa could be achieved through re-opening existing gas producing wells in the areas designated for the establishment of a pilot production test field in close proximity to well number KA-03PT  within the ER56 tenement and negotiations are advanced with potential off takers for the amounts of gas potentially produced.

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