Australia's Kinetiko Energy to Progress with CBM Drilling in South Africa

Kinetiko Limited has received renewal of its Volksrust tenement in South Africa which will allow it to explore for coal bed methane.

The Perth based form expects to complete its planned exploration drilling program of at least 16 holes in the Amersfoort and Volksrust tenements by third quarter of 2012. Resource estimates are being independently revised and are expected by July.

Given the strong results from exploration, Kinetiko plans to develop up to eight pilot production wells on Amersfoort alone. This is more than double the original plan.

The Amersfoort area of the Eastern Transvaal in South Africa is one of the most prospective areas for coal-bed methane (CBM) with well documented, gassy coal measures.

Kinetiko has 49% equity in two onshore gas licences in the Amersfoort area covering 1,874 square km under a Farm Out agreement with South African company Badimo Gas Ltd. Kinetiko is the operator of these licences.