The recently minted Kinetiko Energy (ASX: KKO) is focused on exploring for coal bed methane at its CBM project in the Amersfoort region of South Africa, with some very promising initial results.
The first drill hole has intersected significant gas indications from numerous zones in the target carbonaceous sequences, which helps boost the potential of the remaining 7 drill holes in the current program.
The drill hole intersected target zones and was completed at a final depth of 425.7 metres, with visible gas emissions (soap film bubbles) varying from trace amounts to vigorous degassing was observed by Kinetiko from target carbonaceous mudstones containing numerous minor coaly layers.
Gassy core samples were sealed in canisters and are undergoing gas desorption. The rig has now started drilling the second hole, which is currently at 60 metres depth.
The Kinetiko back story
Kinetiko only hit the ASX boards in July this year after an IPO, and earlier this month made its third successful application of prospective land in the Eastern Transvaal of South Africa.
The most recent application covers almost 1900 square kilometres, which is undergoing assessment and a Petroleum Agency of South Africa (PASA) decision on whether it shall be granted is due within 3 to 6 months.
If granted, a Technical Commercial Permit entitles the holder the exclusive right to apply for and be granted an Exploration Right for the same area.
These applications have the potential to add to the company's existing operations, which includes a joint venture with local partner Badimo, which has previously received approval from PASA.
The joint venture is aiming to commercialise coal bed methane exploration rights in the Amersfoort area, which is one of the biggest and geologically well understood within the country.
Diamond core drilling has commenced and is forecast to be completed in early December, with the company having the option to add a second diamond rig to expedite the drilling program.
The project is strategically located close to the major population and manufacturing centre of Johannesburg, and is surrounded by a major portion of the country's energy generation infrastructure and the coal and gas to liquid fuels industry.
Boosting the prospectivity of the area, the historic underground colliery operations are 10 kilometres from the town of Amersfoort which has indicated gas contents and coal seam conditions.