Despite an unexpected outcome at well 217-23PT, Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) remains confident in advancing its next four wells in geologically promising areas underpinned by historical data and strong gas resource potential.
The company completed drilling at well 271-23PT ahead of schedule on October 16, 2025, marking the first of five wells in a production test program aimed at identifying future gas well cluster sites.
Toward commercialisation
Kinetiko is focused on developing South Africa's energy sector and is working to commercialise its 100%-owned shallow conventional gas projects in Mpumalanga Province.
Drilling at well 271-23PT reached a terminal depth of 463 metres; however, during a choke test, the well did not produce commercial quantities of gas, and no flow testing was conducted.
Initial geological assessments indicated that the well intersected a small, well-sealed compartment, which is considered a geological anomaly.
Despite this, the drilling was completed ahead of schedule and without any incidents.
Second well to spud
Following the completion of work at 271-23PT, the drill rig has been mobilised to a second production test well site, 40 kilometres southwest, near the Lily pipeline, with spudding expected later this week.
Kinetiko's production test program is a significant step in its strategy to identify development sites for its extensive conventional gas assets in South Africa.
Unlocking gas resources
The remaining four production test wells are strategically positioned near essential infrastructure, including gas pipelines and transmission lines, enhancing Kinetiko’s potential as a future supplier to South Africa’s energy market.
Each well will undergo extended flow testing to collect crucial data on flow rates, reservoir pressure and depletion curves, which will be vital for future economic modelling of gas field developments.
The company expects to surpass flow rate targets of 50,000 standard cubic feet (SCF) per day based on previous reserves and rapid progress in drilling.