Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has welcomed positive results from gas desorption testing at its core well 270-03C, about 7 kilometres from South Africa’s largest gas pipeline, the Lily pipeline.
The well is testing at a gas content of more than 10 metres cubed per tonne and rising, meaning all three core wells drilled this year on the southernmost ER270 permit generated strong results from the gas desorption testing phase.
The company’s wireline logging has also established 134.5 metres of sandstone pay zones in a new exploration core, encountering coal seams of a combined width of 4.19 metres in thickness, situated some 15 kilometres from the Lily pipeline.
Targeting Sasol liquid fuel demand
“The first four of our current seven core hole campaign have had the most rewarding results,” Kineitko Energy CEO Nick de Blocq said.
“With the placement being strategic for the potential of supplying both the power and thermal industries, we now move into a new exploration area at ER272, and our next three core holes are designed to prove our ability to provide a substantial part of the upcoming gas needs of Sasol, who have a liquid fuels plant located within our Rights area.
“The fact that every hole we have drilled in this campaign has returned extremely high gas cuts in the logged profiles, including amazing desorption levels in the lab, all adds substance to our claim that we have a world-class asset on our hands.
“It is a very exciting time for us as a company and we are looking to the future with huge anticipation.”