Kinetiko Energy (ASX: KKO) has spudded its first gas pilot production well that will help define gas reserves at its Amersfoort Project in South Africa.
The KA-03 well is the first of three wells on the northern tenement to be drilled by early 2013. This will be followed by another three wells on the southern tenement.
Each of these will be drilled to a total depth of about 450 metres to assess gas flow rates and ultimately well gas recovery.
Due to the extensional geological structures in the region, the coals have relatively high permeability with preliminary studies indicating that low volumes of produced water are expected from the production wells, given the geological and climatic characteristics of the region.
Produced water will, where possible be reused locally.
Kinetiko is the operator of the two Amersfoort licences with a 49% interest under an agreement with Badimo Gas.
Independent, oil and gas consultant Gustavson Associates has estimated that Amersfoort hosts a Contingent Resource of 1.5 trillion cubic feet of gas.
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