Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has spudded two new core wells, 272-03C and 272-04C in ER272, situated just 4 kilometres from South Africa’s largest gas pipeline and near other major energy infrastructure.
The continuation of exploration success will increase the potential that gas-producing fields can be established close to Southern African energy infrastructure including the Sasol Secunda plant, which could be a substantial off-taker of gas.
Kinetiko's accelerated exploration will continue with the Industrial Development Corporate of South Africa (IDC) JV appraisal, which is set to kick off in ER 271 as the initial phase of a multi-well pilot production field.
Moving forward, the drilling contract tender process has been completed and the drilling contract award is imminent to drill five back-to-back wells within the lobe of ER271 to the west of the town of Volksrust.
New proven gas fields
Kinetiko CEO Nick de Blocq said: “Our trailblazing success in Block ER272 is set to continue with the addition of two more exploration core holes between the first pair and the most recent pair of successful core holes.
“Our fifth and sixth core holes are underway and we have every reason to expect similar successes.
“With our new proven gas fields being within reach of no less than four major infrastructural facilities (HV gridlines, Tutuka Power Station, national gas pipeline (Lily-1) and the largest regional liquid fuels manufacturing facility at Secunda) geographic location and our choices of core holes are obviously strategic.
“We also continue to plan our large-scale field developments, starting in Block ER271, which will kick off five appraisal/production wells being drilled from September 2023 to find the sweetest spots to the west of Volksrust around which to develop fields to produce as part of the Company’s joint venture with the IDC.”
READ: Kinetiko Energy continues strong flow of gas results near key South African energy infrastructure
Forward plan
Kinetiko will contract a single, large land rig with a redundant capacity to ensure an accelerated drilling program for all five wells.
The wells are designed to be both exploratory (appraisal) and producers by nature, as they will be completed as part of the company’s joint venture with IDC
With a scope to drill up to 20 wells and a potential to grow to 80 wells, the company is ready to supply gas as required to satisfy the requirements of the MOU scopes with both FFS and Gruner Energy.
The drilling is expected to start in September this year and continue until mid-March quarter in 2024 with long-term well testing planned.