Kinetiko Energy outlines major South African onshore gas reserve and exploration plans [Video]

Kinetiko Energy Ltd, represented by Richard Wolanski at the Proactive One2One Investor Forum, highlighted its distinctive position with world-class onshore gas reserves in South Africa, setting it apart from other companies presented.

Kinetiko is not listed in London but on the ASX, and plans to migrate to the UK market within a year due to pressure from major shareholders, including South African institutions and high-net-worth individuals in London.

With a fully funded exploration program set for 2024, the company aims to mitigate technical risks and enhance value significantly. Its gas resource, located about 200 kilometres from Johannesburg, boasts a current resource of 6 TCF and a prospective resource of 5.8 TCF, expected to increase beyond 10 TCF with further drilling. Kinetiko has already secured a small reserve certified by Sproule and has entered into a joint venture with the South African government’s IDC for a pilot drilling program.

The company’s strategic location near ageing coal-fired power stations and a diminishing gas pipeline from Mozambique positions it as a crucial player in addressing South Africa’s energy crisis. The gas, predominantly methane, is shallow and low pressure, making it relatively inexpensive to extract compared to deeper oil and gas projects.

Kinetiko’s near-term objectives include proving its development model and expanding its reserves, with plans to start generating revenue next year, albeit initially small amounts. Wolanski emphasised the urgent energy need in South Africa, where power cuts are a significant issue, and the company’s role as a potential key energy provider.

With a substantial land holding and a favourable drilling outcome history, Kinetiko is positioned as a first mover in this space. The company’s future involves further drilling to prove reserves and flow rates, with a long-term vision of developing large-scale gas-powered solutions for South Africa, potentially raising additional funds in the UK market for expansion.

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