Australia-listed Kinetiko Energy has signed a memorandum of understanding with White River Exploration to give the companies time to sign a joint venture agreement for Kinetiko’s acreage in the Karoo basin.
The MOU is legally binding for six months to give the parties time to negotiate a joint venture agreement to explore for coalbed methane and other opportunities in the basin.
White Rivers Exploration is a South African mining company which holds coal exploration rights, which will assist the company in understanding the geological make-up of the area.
The MOU covers three technical co-operation permit (TCPs) areas at Heilbron, Kroonstadt and Ventersburg.
Under the agreement, Kinetiko will remain operator and hold a 50% interest.
Two TCPs are located in the Free State coalfields where there are proven gas occurrences, discovered during coal and mineral exploration.
The other is located near the Smaldeel area where helium has previously been commercially produced.