The Department of Mineral Resources and Energy (DMRE) has welcomed the discovery of 3.1 billion cubic feet (6.4 BCF Gross) of maiden gas reserves and a 20% increase in 2C (best estimates) contingent resources to 3.0 trillion cubic feet (6.0 TCF Gross) in Amersfoort, Mpumalanga province.
Last Monday, Kinetiko Energy, an Australian gas explorer that focuses on commercialising advanced shallow conventional gas and coal bed methane projects with a 49% stake in Afro Energy (Pty) Ltd announced the gas discovery.
The company indicated that the discoveries were confirmed through an independent gas reserves and resources report from Sproule B.V.
Afro Energy (Pty) Ltd holds the exploration permits for parts of Mpumalanga province and has signed a joint development agreement with the Industrial Development Corporation (IDC) to co-invest in the production and exploration of gas at approximately 20 wells in Amersfoort.
The maiden gas reserves were discovered through a planned 20-well pilot production cluster that forms part of this joint venture.
Natural gas forms part of energy mix envisaged in the Integrated Resource Plan (IRP 2019), South Africa’s blueprint policy for electricity generation.
It is considered a transition fuel globally and provides the flexibility necessary to run our current electricity generation system in a cost-effective manner.
In this regard, the DMRE promotes exploration and production of gas, and supports the development of gas infrastructure that would augment the country’s electricity generation capacity. Gas is one of resources needed for baseload energy required to strengthen South Africa’s energy security and propel the quest for industrialisation that will bring about growth and development.