Gruner Energy Executes A Letter Of Intent With Kinetiko To Conclude A Gas Development And Supply Agreement
Gruner Energy Executes A Letter Of Intent With Kinetiko To Conclude A Gas Development And Supply Agreement. Kinetiko Energy Ltd, an Australian gas explorer and developer focused on advanced shallow conventional gas and coal bed methane in South Africa, is pleased to provide the following update on its onshore gas exploration and production development activities.
The non-binding Letter of Intent (LOI) entered into with Grüner Energy Proprietary Limited (Gruner Energy) is considered material by the Board as it demonstrates the nature of commercial relationships that the Company is negotiating, which is integral to the Company’s business model of establishing interest in local JV partners to co-develop and co-fund gas fields in Africa. These relationships have the potential of accelerating the exploration vision with funding support.
In addition, Gruner has the capacity to be an off taker for gas produced and strengthens the market opportunities for the Company’s significant contingent gas resource. Finally, the independent certification of gas reserves and the ability of KKO to increase its gas reserves will depend on the ability of the Company to establish that there is a credible market for gas produced in what is projected to be a number of producing gas fields.
Kinetiko CEO, Nick de Blocq, commented: “The co-signing of a Letter of Intent with an international partner in the mid- and down-stream energy sector, especially one with substantial experience on the continent of Africa, is a step change in our approach to eventual commercial production. We are targeting the southernmost areas of our Block ER271 for this project due to deeper terminal depths of those wells and the expected concurrent increase in pressures and flow rates. This LOI is but the first in our plans to develop multiple Joint Ventures with expertise in mid-stream infrastructure groups, who bring a market along with them that is eagerly awaiting our product. We are especially attracted to Grüner’s heightened sense of social responsibility and upliftment of local communities where they work, so we are well aligned with their approach to ESG.“
Gruner Energy Proprietary Limited is a South African incorporated company and a developer, builder, owner and operator of sustainable energy assets in emerging African markets. Gruner’s focus is the African continent, monetising regional gas resources using natural and biogas as a transitional fuel. Gruner’s mission statement is “On-site, off-grid, uninterrupted, cost-effective clean energy”. Gruner manages various modalities in providing energy solutions from natural resource to end- user. These include distributing energy generation systems and energy supply and modular LNG processing, production and supply.
