Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has intersected ‘significant’ gassy zones in targeted deeper carbonaceous geology from its core hole 270-03C in gas-hungry South Africa.
Notably, the core well is about two kilometres from South Africa’s largest gas pipeline, the Lily Pipeline, which feeds the industries of the KZN midlands and coastal cities.
The core hole which spudded late last month started encountering significant gassy zones from a depth beyond 300 metres with strong visible gas emissions observed from core samples at depths between 380 and 390 metres with drilling continuing.
Looking ahead, Kinetiko’s ongoing exploration success at its core wells supports the potential for large-scale production in South Africa.
“100% success rate”
Kinetiko CEO Nick de Blocq said: “Core hole 270-03C is the second of three sites we have planned in the current coring program.
“We are delighted to report that, once again, we have struck gas.
“We first sensed hydrocarbons in a sandy lens within the upper dolerite sill, which gave us a good indication of what was to come, and then once through the deepest dolerite sill structure in our drilling experience, we discovered the expected gassy sediments and coals lying beneath.
“We believe that our 100% success rate is unprecedented in such wide, shallow, conventional onshore plays and each exploratory drilling effort becomes an invitation to return and drill production wells.”
Exploration progress
Core hole 270-03C is currently coring at below 460 metres having drilled through dolerite to 290 metres before breaking through to the sedimentary/carbonaceous zones.
Kinetiko is aware from aeromagnetic and gravimetry surveys, that the dolerite sill undulates and we have encountered a thick sill section in this core hole.
However, recent and historic drilling gives the company confidence that thicker sills can mean deeper sands and therefore the terminal depth (and potential associated gas pay cut in the profile) of this core hole could be similar to recent core holes (270-06C - 147 metres of gas-bearing sediments) and possibly significantly deeper.