The company said it had identified more than 70 mineral exploration boreholes that are emitting gas and was now shifting the program’s focus from exploration to establishing gas reserves by monitoring gas production from flowing wells.

Molopo added it had started connecting the largest wells to start early production.

In the Free State project, where there are 21 boreholes, a soilgas geochemistry survey of about 2000 samples has delineated anomalies that correspond closely to known gas flows.

Magnetometer traverses across these anomalies are confirming fracture zones and associated igneous intrusions thought to control gas migration.

Molopo is in discussions with several South African companies interested in buying gas production from Free State, where combined gas flows of over 1.5 million cubic feet per day from six boreholes have been measured.

The company is also carrying out further investigations to unload water at the Evander project to assess the possibility of increasing gas production from many of the 50 producing boreholes there.

Once the first phase work programme is completed in November, Molopo plans to fast-track its remaining exploration commitments and firm up drillable prospects to supplement existing gas production.

Molopo had, in partnership with Dallas-based Foree International, secured exploration rights to the 2500 square kilometre area in May this year.

It subsequently acquired Foree's 50% stake in the area for $US200,000 cash and $200,000 worth of its shares.

Molopo's South African exploration program involves examining areas that have flowed gas from mineral exploration boreholes in the Free State gold fields, south of Welkom, and in the Evander gold field, south-east of Johannesburg.