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- Oil and gas explorer Kinetiko Energy (KKO) says the Petroleum Agency of South Africa has renewed its exploration rights on the Amersfoort Project
- The grant was struck with Afro Energy which is Kinetiko and Badimo Gas’ joint venture company
- It was also granted three new exploration rights, increasing Afro’s total area by 378 per cent
- The company is preparing for exploration following the approval of work programs
- Unfortunately, Kiniteko has been suspended from trading since October 2017 but has applied to be reinstated
- Shares last traded for 2 cents each
Kinetiko Energy (KKO) has announced the Petroleum Agency of South Africa (PASA) has renewed its existing exploration rights on the Amersfoort Project.
The CEO of PASA executed deeds on Friday, January 17 with Afro Energy who Kinetiko owns a 49 per cent stake in.
Afro Energy was founded through a joint venture in 2015 between Kinetiko and Badimo Gas who owns 51 per cent.
In addition to being granted the Amersfoort Project exploration rights ER38 and ER56, Kinetiko was also granted three new exploration rights; ER270, ER271 and ER272.
Total exploration rights now total 4604 square kilometres representing an expansion of 378 per cent.
The tenements sit approximately 150 kilometres from Johannesburg, South Africa and in the heart of the country’s gas and power transmission infrastructure.
The Department of Mineral Resources has renewed ER38 and ER56, the most advanced tenements and where the majority of $10.3 million in development funds for the project have been spent.
This section is also where gas flow testing has been conducted and will be host to a pilot gas production field.
Previously, Afro has been granted a Bulk Sampling Agreement by the Minister of Mineral Resources and has commenced the process to have the production rights renewed as development at the project continues.
“The renewal and granting of the exploration rights is a significant achievement as it signals the end of several years of limited activity and uncertainty,” Chairman Adam Sierakowski said.
Kinetiko has been suspended from trading since October 2017 after a query from the Australian Securities Exchange (ASX) in relation to a lack of provided information regarding the joint venture with Badimo.
In the past two years, the partners have worked to complete the outstanding financial statements of Afro from 2016 to 2019.
The company has made an application to the ASX to have its securities reinstated to trading and is awaiting its formal response.
At last trade, Kinetiko’s share price sat at 2 cents each.
