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CBM could meet South Africa’s gas needs, according to Business Monitor

World Coal,

South Africa’s need for gas could find a remedy in the country’s coalbed methane (CBM) reserves, according to Business Monitor.

The analyst recently released its latest findings on South Africa’s oil & gas sector in its newly-published South Africa Oil & Gas Report.

The report notes that CBM could provide a more immediate remedy to South Africa’s gas needs than the previously trumpeted shale gas reserves. Australian company Kinetiko continues to see strong production flows from its Amersfoort CBM pilot wells. The company could book gas reserves from the project in H1 2014, while commercial production could begin in the next few years.

Kinetiko Energy

Kinetiko Energy is an Australian gas explorer focused on advanced gas and CBM opportunities in developing markets throughout southern Africa. South Africa has extensive gassy coal basins, as well as well established energy infrastructure and a growing gas demand, which makes investment in CBM developments in the country an attractive prospect, according to Kinetiko. The company has a large potential exploration area, of which just under 10,000 km2 is granted and being explored.

Kinetiko recently commissioned a plane to fly a 3555 line km aeromagnetic survey over part of the Amersfoort project area. The survey, is the second of three phases designed to complete a technical review that will optimise the company’s well site selection, design and operations.

The Amersfoort CBM project is located in the extensive Permian age coalfields of South Africa’s Main Karoo Basin. The area is at the heart of South Africa’s existing coal-based energy and power generation infrastructure and within close proximity to major mining, industrial and manufacturing areas.

Kinetiko operates the Amersfoort project in a joint venture with Badimo Gas Ltd.

Karoo geology contains coals generally equivalent to the similarly aged coals of Eastern Australia. Methane gas is widely distributed throughout Karoo coals and sediments.

Results from Kinetiko’s pilot wells have been “widely encouraging”, according to the company, and demonstrate widespread and recoverable gas in the Karoo coal seams. 

Edited from various sources by Sam Dodson

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