CORRECTION: Moneyweb initially mentioned that JSE-listed Kibo Energy made the gas find and is linked to Kinetiko Energy. However, Kinetiko Energy clarified to Moneyweb on Wednesday that it is not linked to Kibo Energy. The story has been updated, and the error is regretted. Kibo Energy also issued a Sens statement in this regard on Wednesday. 

Kinetiko Energy, a group listed on the Australian Securities Exchange (ASX), has made a massive gas discovery near Secunda in Mpumalanga, following drilling expeditions close to the pipelines of Sasol, Eskom and other industrial gas users.

The discovery is believed to be significant, however, the group would not confirm the extent on Tuesday. It previously estimated five trillion cubic feet in volume over a much wider area in a report to the exploration and production activities regulator Pasa (Petroleum Agency South Africa).

Speaking to Moneyweb, Nick de Blocq, CEO of Kinetiko Energy, confirmed the gas discovery in its ‘272’ exploration right block (ER272), which adjoins the Secunda area and the Lilly gas pipeline that runs through to Durban.

De Blocq could not confirm the exact magnitude of the discovery due to a temporary trading halt of the company’s shares on the ASX.

He said the company focused its drilling expeditions in ER272 after gas exploration success in the ER271 block, which runs from the north of Amersfoort down to the south of Volksrust.

It is also close to Sasol’s Secunda pipeline network and a number of Eskom’s coal power stations.

“We entered two new exploration areas between November 2022 and July this year … and I guided the company into extending the exploration into our newer areas, ER270, which is kind of a loosely shaped horseshoe around the Newcastle area [northern KwaZulu-Natal] and into ER272, which does abut onto Sasolburg,” he said.

Kibo Energy, gas find, Secunda

Activity map showing the 272 as well as 271 and 270 exploration rights blocks. Source: Pasa

He added that a 100% hit rate has been maintained in the area, where it has 40 boreholes.

“It’s absolutely world-class in terms of the strike rate, the geographical size of the blocks, and the quality of the gas, which is up to 97%/98% methane, with only nitrogen and no nasties in it,” he said.

Kinetiko Energy ordered a trading halt on the ASX bourse on Tuesday, pending an official announcement linked to a project update.

The temporary suspension for trading its shares will last until the announcement is made or when trading opens on Thursday, 17 August, the gas explorer, focused on advanced shallow conventional gas and coal bed methane across southern Africa, said.

Kinetiko Energy’s gas find could represent a further gas boon for South Africa, with JSE-listed Renergen’s own operations, particularly its helium plant in Virginia, Free State. Renergen’s Free State project is still in its early stages, but is getting global attention and investment.

There has also been increasing gas and oil exploration interest along South Africa’s coast, especially with discoveries in neighbouring countries like Mozambique (gas) on the East Coast and Namibia (oil) on the West Coast.

Update: Kinetiko Energy makes huge gas discovery near Secunda – Moneyweb