Invictus, Kinetiko and D3 making big plays in African energy sector
Three Australian oil and gas juniors have made big moves today that could completely change southern Africa’s energy future.
Operating in Zimbabwe and South Africa, the companies are targeting major gas developments in a region currently struggling to find new energy sources.
Invictus placement
Oil and gas project developer Invictus Energy (ASX: IVZ) has received official Zimbabwean backing in its successful closure of a $15.3 million institutional placement, $7.6m of which is underwritten by the Mutapa Investment Fund—the sovereign wealth fund of Zimbabwe.
The strategic investment is historic for both Invictus and investors in Zimbabwe, who will now have the ability to hold and trade securities in the company through a dual listing on the Victoria Falls Stock Exchange.
The investment also firms up a pathway to finalise a petroleum production sharing agreement for Cabora Bassa and the large Mukuyu-2 gas find.
Funding through the placement will assist Invictus in progressing its near-term exploration and development activities, including flow testing Mukuyu-2, further appraisal drilling and well test design studies.
Kinetiko program
In South Africa, Kinetiko Energy (ASX: KKO) has received the go-ahead for a multi-well program in Mpumalanga province.
Kinetiko is developing an energy solution for South Africa focused on commercialising advanced shallow conventional gas projects in Mpumalanga, with the upcoming drilling campaign a critical component of its planning.
“The upcoming five-well production test program represents a transformative step forward for Kinetiko Energy,” executive chair Adam Sierakowski said.
“With site preparations already underway and drilling set to commence soon, we remain poised to unlock the potential of the existing 6 trillion cubic feet contingent resource discovery within the Mpumalanga province which is currently equivalent to 1 billion barrels of oil equivalent and expected to grow significantly.”
Kinetiko’s program design has each well strategically located to optimise gas reserves certification and is adjacent to existing infrastructure.
Core well drilling is being undertaken adjacent to the first production test well 271-23PT, which discovered 131.5m of gassy pay zones in November 2022.
Mr Sierakowski said the production testing program will provide invaluable data on flow rates and depletion curves, essential for modelling the economics of future production clusters.
D3 success
Elsewhere in South Africa, D3 Energy (ASX: D3E) has obtained significant gas flow rates from the first test of a multi-well program in the country’s Free State.
Using specially imported equipment from Australia, the company achieved results from test work at the RBD03 well that led to an almost two-fold increase in the stabilised flow rates.
Managing director and chief executive officer David Casey said the test work at the RBD03 location—a legacy gold exploration borehole drilled in 1983—had yielded impressive results with a significant increase in stabilised flow rate.
The company is confident that while gas samples are still to be collected and analysed, the helium and methane composition is expected to be in line with those measured at the company’s two previous wells of around 5% helium and 85% methane.