Kinetiko Energy Ltd (ASX:KKO) has taken another key step in its quest to help feed energy-hungry South Africa through conventional gas and coal bed methane with strong gas results produced from core well 270-06C.
Wireline logging results have established 147 metres of gassy sandstone pay in the vertical profile, being even greater than that reported in the previous Majuba core well, 271-23C, of around 131 metres.
Gas desorption testing
Strong results have also been returned from ongoing gas desorption tests from the hole, achieving gas content of nearly 7 cubic metres per tonne and rising.
The results and testing indicate strong potential for gas field development.
This well was spudded on November 3, 2022, in proximity to the gas markets around the steelmaking and manufacturing centre of Newcastle, South Africa, and was successfully completed in mid-December 2022.
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 about 64 kilometres.
“Trend of success” continues
Kinetiko CEO Nick de Blocq said: “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.”
Favourable comparison
The gassy sandstones in 270-06C compare very favourably to Kinetiko’s other project areas, where test wells have produced commercial rates of gas flow.
This proves that the assessed 'Sandstone Resource Play' extends much further to the south.
Exploration success is establishing a potential gas fairway through ER271 and 272.
Core well 270-06C is about 64 kilometres south of the successful Majuba core well 271-23C and grows Kinetiko’s confidence of the continuity of the intersected strong gassy geology and potential for gas production development through a fairway of about 125 kilometres.
Next core well
"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," de Blocq said.
Other resource plays (CSG and shale gas) target low-permeability unconventional reservoirs which require fracking.
No fracking
However, Kinetiko’s project combines traditional sandstone reservoirs, interbedded carbonaceous siltstones and mudstone source rock and the unconventional trapping mechanism of igneous dolerite dykes and sills.
This has produced an area of thousands of square kilometres underlain by shallow sandstone gas deposits, tapped by low-cost wells without fracking.