Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has successfully completed core hole 270-03C in South Africa where there is strong and growing demand for new energy sources, with strong gassy geology intersected in the targeted carbonaceous geology.
The Australian gas explorer and developer, which is focused on advanced shallow conventional gas and coal bed methane in South Africa, spudded core hole 270-03C on January 24, 2023, achieving a terminal depth (TD) of 605 metres.
Gas-bearing sequences
There were gas-bearing geological sequences totalling at least 112 metres intersected with log analysis and assessment of gas desorption now underway.
This is one of the deepest core holes drilled by Kinetiko and has again demonstrated that the Southern geology does intersect deeper gassy zones as anticipated.
Near major industries
Kinetiko CEO Nick de Blocq said: “The completion of our latest corehole, 270-03C, has proven that we have gassy sediments proximate to the Lily Pipeline, which feeds all of the major thermal industries of the KwaZulu-Natal Province.
"At 605 metres TD, the depth of the borehole is the deepest we have encountered in recent drilling operations which bodes well in terms of potential flow rates and longevity of production.”
Core hole 270-03C being drilled.
Gas shows nearly continuous
The 270-03C exploration core hole is in some of the company’s southern-most geology and is about 20 kilometres from recent successful core well 270-06C.
It has been drilled and cored to a depth of 605 metres, with a thick dolerite sill from 128 to 290 metres and gassy sandstones, coal and carbonaceous siltstones and mudstones below.
Gas shows were nearly continuous below the dolerite during the drilling.
Gas desorption analysis is being completed on the core samples of the coal intervals (and wireline logs are being processed.
Pursuing gas compartment discovery
This well is the second core well the company has drilled in ER270 and has encountered deeper sandstones and coals in the region.
Kinetiko is pursuing a gas compartment discovery in this region where it plans further drilling.
"The initial field data from the logs show yet another highly successful result of our coring campaign efforts,” de Blocq said.
"It is most rewarding to keep our 100% strike rate intact while proving an eventual basis for a reserve aimed at supporting the imminent depletion of gas in the Lily line, or a direct feed into Newcastle.”
The success of 270-03C provides further confidence for core well drilling to the north adjacent to the Lily Gas Pipeline where multiple drill sites have already been approved.
Further drilling
Further immediate core drilling is planned to begin next week to test regional extensions at the core hole location 270-05C and the company is now moving its coring rig to this location.