Kinetiko Energy Ltd (ASX:KKO)’s Korhaan-3 well has reached its terminal depth (TD) and flowed gas.
The energy stock spudded the well in late November — the third in a trifecta of Amersfoot natural gas development wells — and has since reached a 449-metre TD.
Kinetiko says gas was detected early at around 177 metres but showed strongly from 265 metres downwards, going off the scale of the inline meter (more than 10,000 parts per million) from that point onwards.
KKO has also completed logging on the Korhaan-3, 4 and 5 wells, with all three assets now up for multi-day flow testing. Each well is expected to take between eight and 10 days to test.
Down the line, the three development wells could marry up with two adjacent, flow-tested gas wells to form a five-well cluster at the Amersfoot property.
Overall, Kinetiko is confident that all five wells are on track to become potential early, pilot-production wells.
Kinetiko’s strategy
Kinetiko is the largest continuous landholder in the heart of South Africa’s Permian Age Coal Fields, with a project area that spans 7,000 square kilometres and 4,604 square kilometres worth of granted exploration rights.
The extensive holding affords the company access to critical energy, mining and transport infrastructure as it prepares the Amersfoort Project to enter production.
A 2018 gas flow testing study, conducted by an independent contractor, proved Amersfoot had a 95% gas recovery rate, with low levels of groundwater produced.
The flow test also indicated Kinetiko might be able to eliminate the gas treatment step due to the high-quality nature of the project’s gas, with further evidence of strong gas reservoir recharge over time.
Overall, Amersfoot boasts significant exploration upside, with only 15% of the asset’s total land package explored to date.
