Focused on developing an energy transition solution for South Africa, Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has received positive gas indications from core hole 270-08C in the Mpumalanga Province, the deepest core hole drilled by company to date.
As it seeks to commercialise advanced shallow onshore conventional gas projects large gassy sandstone intervals have been proven in hole 270-08C via lithological logging.
The most recent core hole in ER270 is about 17 kilometres north of the town of Memel, around 6 kilometres from the high voltage grid and 26 kilometres from South Africa’s longest gas pipeline, the Lily Pipeline, which feeds the industries of the KZN midlands and coastal cities.
Potential for production
Kinetiko CEO Nick de Blocq said, “Following our previous announcement indicating further exploration success in Block ER270, we are very pleased to announce that we have completed our deepest core hole to date.
"270-08C reached a terminal depth (TD) of 745 metres when we broke through the Dwyka tillites and encountered granitic basement. We managed to log the entire stratigraphy to TD and are very encouraged by the results.”
Kinetiko believes there is great potential for gas production development in ER270.
Map of 270-08C exploration coring, relative to other locations.
About the hole
Core hole 270-08C was drilled with the objective of testing the potential of the sediments overlaying the southerly-dipping basinal structures, capped by thick dolerite layers.
It was spudded on January 22, 2024, and the rig left the site 45 days later after properly plugging the core hole and rehabilitating the site.
Wireline logging has been completed in core hole 270-08C with exploration core results comprising dolerite sills (green zones), gassy sandstone pay (broad pink cross-over shading of density/neutron porosity) and the remainder are coals (2.53 metres) and carbonaceous siltstone/mudstone zones.
Positive early signs
Five coal samples were taken from core hole 270-08C for gas desorption testing and already after three weeks, desorbing results range between 3 to 5 cubic metres/tonne with these results expected to improve over time as is common in Kinetiko's regional coal sample analyses.
The total gassy sandstone pay over 1 metre in thickness is 137.5 metres, in logged depth of 745.7 metres, the deepest drilling in the project to date.
Gas-laden fairway
Inclusion of the core hole 270-08C in the Kinetiko portfolio of successful core holes amplifies the company's belief in the massive gas-laden fairway being demonstrated across all of its tenements.
The geology is continuing to be positive with high productive potential especially in the south deeper geology, increasing the company’s confidence of establishing an expanding resource play.
This phase of exploration in ER270 will include two more core holes planned for next quarter.