Kinetiko Energy has obtained final ministerial approval enabling the addition of 4.9 trillion cubic feet of gas resource to the colossal Amersfoort natural gas project in South Africa’s eastern provincial town of Mpumalanga.
The deal in place with Afro Energy comes alongside the fast-moving development of assets with generator mobilisation and flow testing at its cluster of Korhaan wells underway.
Focused drilling has proven to be gas-rich over the existing 7000 square kilometre project area, and the latest survey has more than doubled prospective gas compartments.
This week, natural gas was the only energy commodity to see a rising spot price as nations grapple with cold snaps and short supply.
The company said it was the last required approval before seeking the go-ahead from shareholders.
“We continue to progress our exploration and development plans aggressively,” executive chairman Adam Sierakowski said
Kinetiko is finalising power production agreements while continuing exploration over Amersfoort.
KKO’s Australian Stock Exchange-listed price was trading at 9.5c today (9.58 am UTC+ 8 hours).