Kinetiko Energy (ASX: KKO) is preparing to flow test its first South African pilot exploration well with first independently certified water and gas flow rates expected by mid-March.
This will in turn allow Kinetiko and its joint venture partner Badimo Gas to register potential reserves with the regulatory authority and book initial reserves.
Flow testing of KA-03PT is being carried out under the direction of reservoir engineers from independent oil and gas consultants Gustavson Associates with the cycles of flow, shut in and pressure testing to be carried out over the next two weeks.
Kinetiko plans to drill and test five pilot exploration wells on the northern Amersfoort Project licence (56ER) by June 2013.
The company has just reached total depth at the third well.
These will be followed by two to three more on the southern licence (38ER) following regulatory approval.
The pilot exploration wells are located in areas identified in exploration drilling to contain gassy coal measures and downhole geophysical log indications of conventional gas accumulations in the surrounding sandstones.
Kinetiko is also continuing to expand its understanding of the coals at Amersfoort with two rigs continuing to drill exploration core holes on the southern licence.
Seven holes have been completed and three more core holes are expected to be completed by early April.
Amersfoot covers 1,601 square kilometres and has prospective gas-in-place of 2.4 trillion cubic feet.
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