Kinetiko Energy Ltd (ASX:KKO) has demonstrated significant gas flow rates from its Korhaan 4 well in the Northern Karoo Basin of South Africa.
Notably, the company’s flow testing conducted last month delivered a stable three-day flow rate of 40,000 standard cubic feet per day despite equipment issues.
With equipment issues resolved, it’s anticipated that K-4 can be retested and reach sustained flow rates above 100,000 standard cubic feet per day.
The flowed gas from the Korhaan wells 4 and 3 along with existing nearby wells KA-03PTR and KA-03PT2 are anticipated to collectively deliver between 200,000 and 250,000 standard cubic feet per day to drive the first pilot production gas field power generation.
“Poised to achieve major milestone”
Kinetiko chairman Adam Sierakowski said: “With gas flow potential established from the Korhaan wells and the capacity to induce more gas from K-5 following a technical review the company is poised to achieve a major milestone in becoming a cleaner energy solution in South Africa.
“The success of the Korhaan drilling program has provided enormous confidence of the capacity of the company’s vast gassy compartment targets to host thousands of future gas production wells.”
Korhaan project summary
Kinetiko has encountered significant gas formations at all four Korhaan Project wells to date with Korhaan Well 3 and Korhaan Well 4 being the standout performers.
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 Lower Karoo section and have successfully flowed low-pressure gas.
Pilot production potential
Kinetiko now has now achieved gas flows to enter a pilot production phase in the near future with highly experienced Gas-to-Power partners, Vutomi Energy (Pty) Ltd.
The program entails using the two historic pilot production wells KA-03PTR and KA-PT2 to join the new Korhaan wells 4 and 3 to produce gas to an in-field, containerised generator linked to the existing grid running through the adjacent farmlands.
The company has ongoing discussions with additional multiple midstream customers.
There is an increasing and urgent need for LNG for thermal industries and transportation, urea for fertilisers, and ammonia for mining applications and the domestic market is becoming increasingly attracted to the potential for gas sourced from within Kinetiko fields.