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Kinetiko Energy Ltd (ASX: KKO) (Kinetiko or the Company) an Australian gas explorer and developer focused on advanced shallow conventional gas and coal bed methane in South Africa, is pleased to provide the following update on its onshore gas exploration and production development activities.
HIGHLIGHTS
- Wireline logging results have established 147m of gassy sandstone pay in the vertical profile, being even greater than that reported in the previous Majuba core well (~131m)
- Strong results from gas desorption testing from core hole 270-06C achieving gas content of nearly 7m3/t and rising
- Drilling of core hole 270-06C has intersected strong gassy sediments in targeted carbonaceous geology extending the potential contiguous gassy sandstone geology south from core well 271-23C by approximately 64km
Core hole 270-06C, spudded on 3 November 2022 in proximity to the gas markets around the steelmaking and manufacturing centre of Newcastle, South Africa and successfully completed in mid-December 2022, has nearly completed gas desorption testing and wireline logging results that indicate strong potential for gas field development.
Kinetiko CEO, Nick de Blocq, commented:
“Our current coring campaign is continuing the trend of success across the extent of blocks ER271 and ER272. Following the record-breaking result of core hole 271-23C, our efforts in exploration block ER270 were well rewarded with a huge gas cut of the organic sediments, proving our theory that the deeper wells to the south would produce increased volumes for potential future production fields. We are currently drilling a core well at site 270-03C and will follow this borehole immediately with our third core hole in block ER270 and then move the rig into block ER272, to start our exploration program in our northernmost block, in the proximity of Sasol’s gas processing plant at Secunda."
Growing Geological Potential
Core well 270-06C is approximately 64km south of the successful Majuba core well 271-23C and grows further confidence of the continuity of the intersected strong gassy geology and potential for gas production development through a fairway of approximately 125kms (Figure 1).
Figure 1 – Exploration success establishing a potential gas fairway through ER271 and 272
Figure 1 – Exploration success establishing a potential gas fairway through ER271 and 272
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