Kinetiko Energy Ltd (ASX:KKO) is ready to start a major new exploration program with a three-well program at Korhaan Project in southern Africa, including the first new gas wells being drilled in more than eight years.
A drilling contractor has been engaged, with two drilling rigs mobilised.
The first rig is already on site and is expected to spud next week while the second rig will arrive in two weeks.
Three new wells are planned to be drilled to a depth of 400-450 metres to test gassy sandstones and coal bed methane (CBM) horizons.
Also, Xcalibur Airborne Geophysics (Pty) Ltd has commenced flying the largest ever aeromagnetic survey undertaken by the company.
3-well program
The upcoming three-well drilling program to be drilled within 400 metres of its proposed gas collection terminal at Amersfoort in South Africa, where access and infrastructure are being established, focusing on developing new gas discoveries and potentially creating a five-well pilot production cluster.
Kinetiko has also engaged experienced contractors to perform the well cementing and wireline logging, all of whom are mobilising to site.
The three new wells - Korhaan-3, Korhaan-4 and Korhaan-5 - are estimated to reach a depth of up to 450 metres to test the gassy sandstones and CBM horizons from the known coal beds that were intersected and observed to be gassy from adjacent (400 metres away) flow tested gas wells KA 03PT2 and KA 03 PTR (now known as Korhaan-1 and Korhaan-2).
The program will comprise two drill rigs, with the first rig spudding Korhaan-4 and doing a percussion/air-drilled well.
A second rig will spud Korhaan-3 and drill with a rotary mud system through the 300 metres production interval.
The first rig will then drill Korhaan-5 using percussion/air once more.
Kinetiko expects all drilling activities to be completed by early December and all three wells will be flow tested after logging.
The company intends early in 2022 to return and case, cement and perforate each well to maximise gas production while minimising or negating water ingress.
New aeromagnetic survey
Aircraft have been confirmed to commence flying a 13,479-line kilometre survey covering 564 square kilometres over selected portions of ER 270 and ER 272, which form the most Southern and Northern extensions of the company’s exploration rights.
Kinetiko anticipates the results from the survey to be available later next month, which will assist targeting areas for well tests and further pilot production fields.