Kinetiko Energy (ASX: KKO) expects to start by the end September the first production test well at its Amersfoort coal seam gas project in South Africa after receiving approval from the country’s energy regulator.
Key pilot production well equipment has arrived on site and the drilling and completions rig is being contracted to mobilise by the end of this month.
The pilot production program will test gas recoverability and is target at converting a portion of resources into reserves.
Drilling of the production test wells is expected to continue into 2013 with first reserves booked in the first quarter of 2013.
Kinetiko is also continuing exploration drilling on the Volksrust tenement with the completion of its first well, which intersected gassy coals.
It has mobilised a second core rig to accelerate the exploration program of at least 8 core holes.
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