Kinetiko Gets Funds For South Africa CBM Project

Kinetiko Energy has received a payment of $1.1 million from its joint venture partner, Badimo Gas in Amersfoort project, which is located in South Africa.

“The payment also has reinforced the operational support of Badimo to the Amersfoort project and financial capacity of Kinetiko’s local partner to contribute to future commitments,” Kinetiko said in a statement.

Kinetiko said that this payment would place the partners in a better position to take the project forward. With the fresh funds exploration activities on the Amersfoort project is expected to continue for the remainder of the year and the first quarter of next year.

Kinetiko and Badimo have agreed to expedite an exploration program on the Amersfoort project to complete flow testing on the remaining pilot test wells, and investigate further targeting of highly prospective pilot test well sites adjacent to successful wells. This undertaking has the objective of achieving the booking of maiden reserves by first quarter of 2014.

The Amersfoort project is located in South Africa’s Mpumalanga region, 250 km east of Johannesburg. Mpumalanga is a highly prospective area for coal-bed methane (CBM) with well documented, gassy coal measures and with gassy sandstones overlying the coal horizons.

Kinetiko is the operator of two gas licences in the Amersfoort Project (49% interest) covering 1,601 sq km under an agreement with South African partner, Badimo Gas.