Kinetiko Serves Exit Notice to Partner in South Africa CBM Project

Kinetiko Energy has served its partner in Amersfoort project, Badimo Gas with a notice of withdrawal to exit the project after the South African company failed to meet cash calls totaling around A$1.4 million.

Australia listed and Souther Africa focused Kinetiko is the operator as well as a 49% participating interest holder in the Amersfoort project. Badimo holds 51% share.

“Under the terms of the Joint Operating Agreement (JOA), expenditure on the Amersfoort Project is obligated to be funded by both parties in accordance with their participating interest position. Badimo has failed to meet cash calls now totalling approx. A$1.4 million, has remained in default despite the issue of default notices by Kinetiko in terms of the JOA and has failed to rectify its payment default within a period of 60 days. Kinetiko has therefore exercised its option under the JOA to have Badimo withdraw from the Amersfoort Project and has issued a notice of withdrawal to Badimo as is provided for in the JOA,” Kinetiko said.

Subject to compliance with South African regulatory requirements and approvals for giving effect to such transfer, Kinetiko will hold a 100% participating interest in the Amersfoort Exploration Rights.

The Amersfoort Gas Project is located in the extensive Permian age coal fields of South Africa’s Main Karoo Basin.