These generators are already in use throughout Africa as an alternative to the existing inefficient coal-fired power station, the expensive diesel-powered generators, and the import of electricity from neighbouring Southern African countries.
Botswana is also a significant net importer of electricity, with demand estimated by the Botswana Power Corporation to grow by 3-5% per year over the next decade. The existing domestic supply and demand gap is only expected to grow, thereby providing Karoo Energy with a significant opportunity.
Our six exploration licences in Botswana cover a significant portion of the Kalahari Karoo Basin of Botswana (KKB) that is comparable in size to the main Karoo Basin in South Africa.
Specifically, these licences cover approximately 142,824 km2 or greater than 35 million acres (which will be reduced to approximately 116,000 km2 in the event the EL001/2012 renewal application is successful, and approximately 89,200 km2 if the renewal is not granted).
While this is a relatively mature minerals exploration and mining area, it represents a frontier petroleum exploration terrain where a relatively small number of petroleum exploration wells have been drilled and limited seismic data has been acquired.
|Asset||Operator||EOAG Interest1||Status||Renewal||Licence Area||Comments|
|EL001-20124||EOAG||100%||Active||Dec 2015 (renewal application in progress)||53,544.4 sq km||Natural Gas/Petroleum Licence2|
|EL161-2015||EOAG||100%||Active||June 2019||23,980 sq km||Natural Gas/Petroleum Licence2|
|EL162-2015||EOAG||100%||Active||June 2019||34,435 sq km||Natural Gas/Petroleum Licence2|
|EL171-2015||EOAG||100%||Active||June 2019||29,291 sq km||Natural Gas/Petroleum Licence2|
|PL159-2015||EOAG||100%||Active||June 2018||986 sq km||Coal & CBM Licence3|
|PL160-2015||EOAG||100%||Active||June 2018||588 sq km||Coal & CBM Licence3|
1. Karoo Energy plc has an 93.475% stake in EOAG
2. Natural Gas / Petroleum Licence covers exploration phase only
3. CBM Licence covers exploration phase only
4. Renewal of exploration licence EL001-2012 is subject to relinquishment of 50% of the original 53,544.4 sq km total acreage
The northeast-southwest trending KKB can be divided into several sub-basins. The Gemsbok sub-basin is located in the southwestern part of Botswana, west of an old basement structure (the Kalahari Line) that marks the western edge of an Archaean craton. Two of the Group’s petroleum licences encompass virtually the entire area of this sub-basin in Botswana.
The Central Kalahari sub-basin is bounded by the Kalahari Line in the west, by fault lineations to the north and south, and by the Jurassic age Karoo Dolerite Dyke Swarm in the northeast.
The other two petroleum licences and both of the Group’s CBM licences are located within this sub-basin. The Ellisras sub-basin to the south and the Northeast Botswana sub-basin do not occur within any of the Group’s licences.
The KKB is filled by late Carboniferous to early Jurassic age Karoo Supergroup sediments and volcanic rocks, beneath a thin veneer of Kalahari Group sands. Most of the hydrocarbon potential in the KKB is thought to lie within the shales, sandstones and coals of Permian age comprising the Ecca Group.
Ecca Group coals are mined extensively across southern Africa, including Botswana, where mineable coalfields fringe the Central Kalahari sub-basin. The Group’s CBM licences are located in the centre of this sub-basin where these Ecca coals are more deeply buried.
The shale gas targets occur towards the base of the Ecca Group where organic-rich black shales are well established source rocks across the region, and broadly correlate with the shale gas reservoir rocks in South Africa that were evaluated in the EIA 2013 shale gas study.
The best defined and laterally persistent shale gas target is a massive to laminated mudrock unit, the Kobe or Bori Formation, occurring at the base of the Ecca immediately overlying the glacial tillites of the Carboniferous Dwyka Group. These are known to reach 124 metres in thickness in the Gemsbok sub-basin, and have high organic content, as seen in well CKP8C-1.