Kinetiko Energy Ltd (ASX:KKO) has encountered significant gas formations at all three Korhaan Project wells in the Northern Karoo Basin of energy-hungry South Africa with Korhaan Well 3 (K-3) the latest standout performer.
Significant gas flow rates have been achieved in K-3 with a flow rate of 83,000 standard cubic feet per day.
In addition, Korhaan Well 5 (K-5) exhibited significant early flow rates of 210,000 standard cubic feet per day before declining.
Furthermore, Korhaan Well 4 (K-4) has been re-entered successfully and well test operations are underway
Moving forward, gas from the Korhaan wells along with existing nearby wells KA-03PTR and KA-03PT2 is anticipated to collectively deliver between 200,000 and 250,000 standard cubic feet per day to drive the first pilot production gas field.
“Sizable exploration opportunities”
Kinetiko's executive chairman Adam Sierakowski said: “With the global energy and gas shortages at extreme levels, timing has never been better to start flowing gas from the recently completed three-well Korhaan project.
“Kinetiko has never failed to drill a gassy well and with recent funding secured from South African and Australian investors, we are poised to accelerate our sizable exploration opportunities while commencing pilot gas production.
“The company is focused over the next three months on achieving major milestones by securing our first domestic gas customers and booking maiden gas reserves certification.”
Korhaan project well summary
All the Korhaan Project holes were percussion drilled to intersect carbonaceous sandstone and coal geology at depths that ranged from 130 metres to 450 metres.
The wells are conventional and have unsophisticated completions as they are open holes that test the entire sub-karoo section and have successfully flowed low pressure gas.
The ER 271 tenement is generally located in the Northern Karoo Basin of South Africa, a retro-arc foreland basin containing extensive thicknesses of Permian sediments belonging to the Karoo Supergroup.
Extensive coal deposits are contained within the Ecca Group (280-250 million years). The Korhaan well project is within the Ermelo Coalfield.
The Permian age sediments of the Northern Karoo Basin are extensively intruded by Jurassic age dolerites.
Gas exploration has focused on coal sandstones, coal and other carbonaceous structures at depths of 130 metres to 450 metres.
Korhaan-3
Korhaan 3 was tested during May 2022 and had a successful series of multiple flows and shut-in periods.
Encouragingly, each period showed an increase in both flow rate and build-up pressure, proving its placement within a large compartment with rapid recharge functionality.
The last flow period produced very high-quality gas (~98% methane, 2% nitrogen and zero CO2) at a sustained rate of over 92 Nm³/hour (83 mscfpd) gas flow with a shut-in pressure build-up of over 12 bar.
Pilot production potential
Kinetiko is planning to enter a pilot production phase in the near future with highly experienced gas-to-power partners Vutomi Energy (Pty) Ltd.
This program entails using existing wells at Brakfontein to produce gas to an in-field, containerised generator linked to the existing grid running through the farmlands.
The first phase of commissioning and testing will be undertaken targeting 1 megawatt of output.
Further phases are planned for the upgrading of the conductors and transformer to enable a scalable modular system increased output to 5 megawatts.
Kinetiko is in ongoing discussions with additional multiple midstream customers.
There is an increasing and urgent need for LNG to thermal industries and transportation, urea for fertilisers, ammonia for mining applications and the domestic market is becoming increasingly attracted to the potential for gas sourced from within Kinetiko fields.