Molopo Energy subsidiary, Molopo South Africa Exploration, has been awarded a production right over an area of approximately 200,000ha in South Africa’s Free State province.
The company claimed that this is first onshore production right to be awarded in South Africa.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Molopo Energy manager for South Africa Peter Price said securing the first onshore production right is an exciting development for both South Africa and for the company.
"We and our black economic empowerment (BEE) partners are looking forward to contributing to the enhancement of the local community," said Price.
In 2010, the company performed an estimate of its reserves and resources in the Virginia Licence area.
Production right application was based on this exploration work, where P1 reserves were estimated at approximately 9.2 billion cubic feet and P2 reserves of approximately 23 billion cubic feet.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMolopo Energy owns an 80% stake in the project while the rest is held by BEE and the government.
The company plans to tie-in 4 of the 11 pilot production wells where gas flow of approximately 1.2 million cubic feet per day continues, as part of the initial phase of development of the project.
Molopo Energy intends to commercialise initial volumes of 600 million cubic feet per day of natural gas through the provision of compressed natural gas for transportation.
The company intends to invest A$14.9m ($15.5m) over the three year period and in the long term the company intends to develop of more than 200 wells.
Bowman Gilfillan has assisted the company in the preparation of the production right application.
Image: Molopo energy clain this is the first onshore production right to be awarded in South Africa. Credit: Wikipedia
