Sunbird Energy Granted New License to Explore CBM In South Africa

Africa focused and Australia listed coal bed methane (CBM) and gas explorer Sunbird Energy has been awarded the Ermelo West Exploration Right which covers 797 sq. km of prospective acreage in the Ermelo Project in South Africa, in the Witbank coal mining region.

The granting of the licence allows Sunbird to focus its exploration efforts at the Ermelo Project on the western licence area where the coals are at greater depth and have the potential to deliver a commercial gas resource, the company said.

Ermelo is considered a potential CBM project due to its extensive coal deposits and the presence of large quantities of methane gas in an old coal mine that operated in the area until 1997.

The key driver for the Ermelo Project is its location immediately adjacent to gas pipeline infrastructure and South Africa’s largest gas users. The gas pipeline from Mozambique traverses the licences providing direct access to markets and customers. The project is also located approximately 60 km east of Secunda where Sasol operates major coal and gas to liquid fuels and petrochemical complexes.

Sunbird has a portfolio of five CBM projects covering an extensive area of 9,904 sq. km of prospective coal basins across southern Africa. The company is conducting a phased exploration program that will define the resource base and demonstrate the commercial potential of its portfolio of CBM assets which contain a Best Estimate Gas-in-Place of 5.3 Tcf (Trillion cubic feet) and up to a High Estimate of 29.2 Tcf.