Kinetiko Energy (ASX:KKO) and joint venture partner Badimo Gas have commenced drilling a sixth pilot production well at the onshore Amersfoort project in South Africa.
The rig will initially complete the KA-06PT before moving to a seventh and eighth well, with completion of all three anticipated in late October.
Drilling is designed to test gassy sandstones and coal seam gas horizons identified in exploration core holes drilled to date.
Each well is anticipated to have a total depth of 450m to assess gas flow rates, and ultimately well gas recovery within 4 to 6 weeks.
Well KA-06PT has already encountered gas and expectations are for water pumping to commence within 48 hours, likely to allow initial gas flows to be produced by the end of the week.
Kinetiko will then move to determine additional gas flow rates and recoverability with the potential to define maiden reserves in first quarter 2014.
Additionally, KKO continues negotiations with several potential customers for sales of gas produced.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.