Kinetiko Energy eyes conventional upside in Mpumalanga

Australian company Kinetiko Energy announced that it may enjoy some conventional gas upside from its Amersfoort - Mpumalanga project, where it has established a contingent coal seam gas resource of 1.12 trillion cubic feet of gas. Kinetiko said in a statement that preliminary petrochemical analysis suggested that conventional gas may be present in some sandstone and mudstone intervals.

Conventional gas was not included in the estimate provided by independent experts Gustavson Associates and could provide major upside.

Kinetiko is targeting coal bed methane in South Africa, focusing initially on the Mpumalanga coalfield, which, the company said, is one of the biggest and geologically well understood within the country. The Australian Securities Exchange (ASX) member company is joint venture partner with South African Black Economic Empowerment (BEE) Badimo Gas. In December 2011, Kinetiko Energy announced that it has 49% equity in two onshore gas licenses covering 1,874sq km under a farm out agreement with Badimo Gas Ltd, with Kinetiko Energy as the operator.

The Amersfoort - Mpumalanga project is strategically located close to Johannesburg's population and manufacturing hub, Kinetiko said, and is surrounded by a major portion of the country's energy-generation infrastructure and the coal and gas to liquid fuels industry. Boosting the area's potential, the historic underground colliery operations are 10 kilometres from the town of Amersfoort which has indicated gas contents and coal seam conditions.

Read the full article on www.proactiveinvestors.com.au.