Kinetiko Energy (ASX:KKO) has expanded its Amersfoot coal seam gas exploration project in South Africa after enjoying some early successes
Drilling at Amersfoot has been encouraging so far with gas encountered at all the holes drill so far while the KA-06 hole is spontaneously emitting methane gas.
This led the company to add another 2 exploration holes to the program and decide on drilling up to 8 pilot production wells, more than double the number it had originally planned.
Work on the pilot wells is expected to start in July 2012 and the company has already completed geophysical surveys over 4 small pilot well areas to better determine local geology and improve exploration success.
Kinetiko also plans to start a 8 hole exploration program on the Volksrust tenement in the middle of the year, followed by at least 2 pilot wells there.
Meanwhile, the company said US-based independent gas resource consultancy Gustavson and Associates is currently undertaking a review of the project’s resource estimate, which had been previously estimated at a contingent 1.12 trillion cubic feet of gas.
Gustavson has also audited Kinetiko’s operations and deemed them to align with best industry practice.
Kinetiko holds a 49% operating interest in the Amersfoort Project while partner Badimo Gas holds 51%.
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