Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) is celebrating today after the 270-03C core well intersected what it calls 'significant gassy zones' just 10 kilometres from South Africa’s largest gas pipeline.
The core hole started encountering intermittent gassy zones from 175 metres down-hole, with strong visible gas emissions observed from core samples at depths below 220 metres.
Drilling continues on hole 270-03C, which is currently coring below 350 metres. With the drill bit still spinning, Kinetiko hopes the hole can reach similar terminal depths to other core assets on exploration right 270.
Results “beyond expectations”
Kinetiko CEO Nick de Blocq said 270-03C was the third of three sites planned in the current coring program.
“This will conclude our commitment work scope in this block prior to focusing our attention on as-yet undrilled Block ER 272, which connects Sasol’s coal to liquids plant in Secunda,” he explained.
Hole 270-05C is one of three core assets on exploration right 270.
“The results of these three core holes have been tremendous and, in some ways, beyond our expectations.
“We will follow exploration in this block to continue expanding our knowledge of the sub-surface in this region as we have further approved sites on which to drill and create further extensions to the huge gas fairway already proven.”
Exploration acceleration
A second coring rig is en-route to ER270, contracted to fast-track exploration across the tenements.
Once three core wells are completed in each block, both rigs will mobilise to ER272 and drill near global chemical company Sasol’s liquid fuels refinery.
“[Sasol] is watching with great interest as a potential source of much-needed gas for their conversion from coal to liquids (CTL) to gas to liquids (GTL),” de Blocq noted yesterday.
Kinetiko is also on the hunt for some larger drill rigs, picked to execute a nine-hole campaign on the cornerstone 271 exploration right in the second half of this year.
Five of the holes are set for producer status, while the remaining four are full appraisal wells with producer potential. All nine holes have been approved by the Petroleum Agency of South Africa (PASA).
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