Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has received further encouragement from its latest core hole, 270-11C, in South Africa’s Mpumalanga Province which has intersected multiple pay zones as it targeted deeper geology and resulted in significant gas shows.
Log analysis is now complete and gas-bearing geological sequences totaling 90 metres were intersected and along with 270-11C’s 5-kilometre proximity to ER 383, provides further confidence that the gas basin extends throughout Kinetiko’s entire tenement package.
This final drilling and logging of 270-11C completes the 2022 to 2024 core hole exploration program in ER270, with all regulator work requirements completed.
100% success rate
270-11C represents the 38th core hole completed and logged in ER270 as part of onshore gas exploration and production development activities to support Kinetiko’s strategy to develop an energy solution for South Africa focused on commercialising advanced shallow conventional gas projects.
Core hole 270-11C continues the company’s 100% success rate of intersecting significant gas pay zones in each core hole, providing optimism of materially increasing the future measured resource calculation.
Production test program
The success in 270-11C also provides the company with confidence on the eve of a five-well, nine-month production test program, for which preparations are in the final stages with the first test well expected to be spudded within the next four weeks.
This program has the objective of delivering extended flow testing data on each of the production test wells.
Map of 270-11C core hole, relative to other locations.
About core hole 270-11C
Core hole 270-11C, with PQ/NQ collars reducing to NQ3, was spudded on June 7, 2024, and has been completed to a final depth of 613.8 metres.
It was drilled in some of the company’s southern-most geology and approximately 7 kilometres from the recent successful core well 270-12C.
The hole intersected mainly dolerite sill to 390 metres above gassy sandstones, coal and carbonaceous siltstones and mudstone zones from the Karoo Formation below. The added depth of the gassy zones is expected to increase the pressure and volume of the gas flow in future production well testing.
Wireline logging data points to a significant level of moveable gas throughout various sections of the core hole below the dolerite sills.
Critical data
Core hole 270-11C has provided critical data for further mapping the distribution, depth and thickness of gas-bearing strata within the exploration right area and assists in further refining the company’s geological modelling.
This phase of exploration achieves the successful conclusion of the regulator-required work program in Block ER270.
Across the history of the 38 core holes completed, the company has drilled a total of 18,212 metres and intersected a total of 3,867 metres of gas pay zones greater than 1 metre thick.
The continued exploration success from core hole 270-11C amplifies the company’s assumption that extensive gas-laden fairways exist across all of its exploration rights.