Kinetiko subsidiary secures A$1.26m for Phase 1 gas production cluster in South Africa
ASX-listed gas exploration company Kinetiko Energy's South African subsidiary Afro Energy has signed a A$1.26-million cooperation and settlement agreement with renewable-energy company Mulilo Newcastle Wind Power (MNWP).
This agreement grants MNWP an exclusive use arrangement over a defined exclusion zone, and resolves overlapping land use with the proposed Newcastle wind energy facility. This provides certainty for Kinetiko’s exploration programme to continue up to the boundaries of the defined zones.
MNWP is developing the Newcastle wind energy facility and associated grid connection infrastructure in KwaZulu-Natal over areas that overlap Afro Energy's exploration right 270.
The parties have agreed to cooperate so that the Newcastle project and Afro Energy's exploration operations can proceed without interference.
Afro Energy has agreed to an exclusive use arrangement over a defined exclusion zone of 18.54 km2 on the eastern boundary of the exploration right area. This represents about 1.1% of Kinetiko’s exploration right.
Kinetiko retains all exploration and related rights outside the defined zones, including the ability to renew or convert its exploration right.
Afro Energy will receive the rand equivalent of A$1.26-million in cash. The cooperation fee will be applied to expediting the Phase 1 gas production cluster at Brakfontein.
Further, the agreement provides Afro Energy with a right of first refusal to supply natural gas should Mulilo or MNWP procure gas-fired electricity generation in connection with the Newcastle project. This does not oblige Mulilo or MNWP to procure gas, Kinetiko adds.
Kinetiko is focused on commercialising its wholly-owned shallow conventional gas projects in South Africa.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Projects
Latest Multimedia
Latest News
Showroom
Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers
VISIT SHOWROOM
Established in 1933, EKATO is the world leader in agitation technology, supplying agitators for processes and applications such as chemicals and...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
