Molopo discovers more gas ‘blowers’ in South Africa

Molopo’s initial three-month exploration and appraisal work program in its newly awarded.....

  Molopo’s initial three-month exploration and appraisal work program in its newly awarded South African Exploration Rights has yielded encouraging results with over 70 gas emitting boreholes identified.Given the encouraging results, Molopo’s program emphasis is now shifting from exploration to the monitoring of gas production rates from flowing wells, with the aim of establishing gas reserves. The company has commenced preliminary work on connecting the largest of the gas blowers to establish an early cash flow. Recent field-work uncovered 71 mineral boreholes emitting gas, some at high rates – many at low rates, bringing the total number of gas emitting boreholes to 21 in the Free State project, and 50 at the Evander Project. In some areas, clusters of these gas-emitting boreholes appear to be geologically controlled. Molopo said that in the Free State, a soilgas geochemistry survey, comprising approximately 2,000 samples to date, has delineated anomalies that correspond closely to known gas flows, as well as to geological structure. Magnetometer traverses across these anomalies are confirming fracture zones and associated igneous intrusions that are thought to control gas migration. In the light of gas flow rates already measured in the Free State and the additional gas emitters recently discovered, Molopo has commenced discussions with several South African companies with respect to purchasing existing gas production. Possible uses of the gas from the Free State include industrial use in nearby towns, provision of compressed natural gas (CNG) to local transport companies, small-scale LNG or liquid fuels generation and gas-fired electric power. At the Evander project, many of the boreholes emit small volumes of gas bubbling up through water. Molopo said further investigations would consider unloading this water to assess if it is possible to increase gas volumes from these wells. The company has scheduled soilgas and magnetometer work for the Evander project in September, which it expects will shed more light on the dimensions of the prospective areas. Following completion of the Phase 1 work program in November, Molopo said it aims to fast-track its remaining exploration commitments and firm up drillable prospects to supplement existing gas production.