A positive report. Good gas at the Majuba Power Station first hole. I liked this new information from the report; Numerous locations were approved by the South African regulators, and the 1st choice to drill before the end of the year is one that targets the potential to provide gas to the industries at Newcastle and the KwaZulu-Natal coast which currently receive low quality process gas from the Lily Pipeline. Core well 270-06C is anticipated to encounter deeper sandstones and coals in the region and the Company is pursuing a gas compartment discovery in the highlands to the west. A nearby coal exploration hole drilled in 1979 had coal as deep as 408m, and sandstone gas reservoirs are anticipated both above and below the coal. Success at core well 270-06C will extend gas resources 25km further south than prior discoveries.
KKO Price at posting:
9.4¢ Sentiment: Hold Disclosure: Held
