Bastion Oil and Gas South Africa (Pty) Ltd (“Bastion”) is a South African empowered company committed to finding a solution to South Africa’s energy deficit by exploring for and producing indigenous onshore gas. This indigenous gas can be used for power generation in combination with renewables. Bastion holds three technical cooperation permits (“TCP”) over areas that measure approximately 3 295 km² and has exclusivity to apply for exploration rights over these areas.
Bastion’s peers within South Africa, Renergen Ltd (JSE and ASX listed) and Kinetiko Limited (ASX listed), have now unequivocally proven that commercial quantities of South African indigenous gas are readily available and this gas must form part of South Africa’s just energy transition.
In March of this year, the South African government through the state-owned Central Energy Fund (“CEF”) concluded a conditional non-binding term sheet that could see CEF acquire 10% of Renergen’s subsidiary, Tetra 4 and 100% holder of the Virginia onshore gas production right, for ZAR1 billion (US$ 64,4 million). This action is in line with government’s published gas master plan that envisions converting six of Eskom’s older coal power plants to run on gas, converting trucks and taxis to run off gas instead of diesel and building thousands of kilometers of new gas pipelines.
In April of this year, the South African government through another state-owned entity, Industrial Development Corporation of South Africa, concluded a transaction to acquire a 45% interest in Kinetiko’s Amersfoort onshore gas exploration right in return for providing ZAR70 million (US$4.8 million) of finance. This transaction, together with the Renergen transaction, indicates a clear intent by the South African government to advance the interests of onshore gas exploration and development.
Bastion recently furnished the Petroleum Agency (South African licensing authority) with its second quarterly reports in respect of the TCPs. Bastion’s focus remains confirming its understanding of the regional onshore geology and the identification of suitable drilling targets. Having acquired all the existing data, which includes coal borehole data from the Council of Geoscience as well as borehole data from the Petroleum Agency, Bastion is also evaluating published regional magnetic survey data. Bastion’s preliminary evaluation of the magnetic data has yielded positive results that align with the geology of Kinetiko, Bastion’s neighbour. Bastion is also investigating the use of the multi-spectral Sentinel satellite data and its ability to detect methane plumes to use as an exploration tool. Although the use of this technique has not been proved yet, it is hoped that it can deliver positive results in terms of improved well site selection.
Bastion’s exploration right applications are near completion and will be lodged within the next few months as Bastion develops an accelerated exploration work program which will include the drilling of ten wells in targeted areas. Bastion continues to have positive meetings with potential investors and hopes to close financing prior to the lodgment of its exploration rights applications.
Recent correspondence from the Petroleum Agency confirms that the seven Bulwark Oil and Gas RSA (Pty) Ltd. (“Bulwark”) TCP applications, over areas measure approximately 26 610 km², have passed the initial and secondary stages of assessment and have been progressed further in the system for final decision-making. A further announcement will be made once approvals have been received.
Another Bastion affiliate company, Rockit Energy (Pty) Ltd. (“Rockit”), has now been established. On the 5th May 2022, Rockit applied for two technical cooperation permits in the Eastern Cape having identified within these application areas, measuring approximately 9658 km², onshore gas potential. The basis for this application is the existence of three community water boreholes that produced gas. Further study is underway to understand the petroleum system of the Karoo Supergroup in the Eastern Cape.
For more information please contact the undersigned at barrisford@bastionoil.com or info@bulwarkoil.co.za. We look forward to partnering with like-minded companies as joint venture partners, contractors and gas off-takers.
Barrisford Petersen
Founder and Managing Director
BASTION OIL AND GAS SOUTH AFRICA (PTY) LTD
BULWARK OIL AND GAS SA (PTY) LTD
ROCKIT ENERGY (PTY) LTD
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