Panoro Energy has taken a 100% stake in a South African licence, onshore in the Karoo Basin, citing gas – and helium – prospectivity.
South Africa has awarded technical co-operation permit (TCP) 218 to Panoro, the company said. The licence covers 6,608 square km in northern Free State.
“The award of TCP 218 will allow us to incubate a potentially exciting natural gas and Helium play,” said Panoro CEO John Hamilton.
“While the technical fundamentals and market opportunities for both natural gas and Helium in South Africa represent a compelling proposition, the renewable nature of the resource, possibility to displace coal fired power and many applications of helium make for an equally compelling investment from an ESG perspective.”
Hamilton said Panoro would evaluate the area’s “high potential” in the coming months.
The licence runs for 12 months. During this time, Panoro will have the right to carry out desktop studies of existing data sources and carry out field work. Following this, it has an option to apply for an exploration right on the area.
Renergen is also working on an LNG and helium project in Free State.
Panoro noted the appeal of helium in its plans. Wells in the North Karoo Basin have found helium concentrations of more than 20%, while the global norm is 2-4%. The company said South Africa had the potential to become a strategically important source of helium supply.
Producing natural gas for local consumption is also an opportunity identified by Panoro. The licence is near demand centres and gas production could go to supply domestic gas to power projects.