Kinetiko Energy Ltd (ASX:KKO) is making strong progress in gas-hungry South Africa, continuing its onshore gas exploration and production development activities on high-priority targets.
The gas explorer’s drilling rig has been mobilised to a new core hole near the Eskom-operated Majuba power station which is just five kilometres from the hole.
Moving forward, exploration is set to continue with further core hole drilling on high-priority gassy compartment targets at the tenure.
“Aggressive exploration”
Kinetiko CEO Nick de Blocq said: "The urgent need for gas to contribute meaningfully to the energy crisis in South Africa has manifested itself in an increasing interest in the largest onshore resource in South Africa.
“Active players in the mid-and downstream sectors are considering gas for power, LNG, chemical derivatives and direct pipeline offtake.
“To this end, we are embarking on an aggressive exploration campaign, starting on September 19, 2022, with a core hole very close to Majuba Power Station, which has a 20MW gas generator awaiting a source of fuel.
“This will be followed by at least another six boreholes in both the northerly and southerly parts of our Rights areas before the end of the year.
“The recent government initiative of creating a new power supply company has brought three ex-coal fired power stations into play, which will be re-engineered to become gas fired.
“There has never been a better time to have gas assets in the heart of South Africa’s energy infrastructure.”
Exploration program
Kinetiko’s exploration program is restarting with a core hole planned for September 2022.
The core hole KV-14C will be the closest borehole to the Eskom-operated Majuba power station, which is capable of being fired by gas, and is expected to prove the continuation of the gassy sandstone geology prevalent in the area from historic exploratory work.
Aeromagnetic surveys have illustrated strong targets for potential gassy compartments in the region and the company has reached an agreement with the local landowner for site access to undertake drilling during September and December quarters.
Forward plan
Kinetiko has planned further exploration of core holes on exploration right 272 (ER 272) near the Secunda synthetic fuel plant owned by Sasol.
Further, exploration right 270 (ER 270) in the south where aeromagnetic surveys have identified the most prospective gassy compartment targets the southerly dipping geological basement is anticipated to provide deeper, higher pressured gassy sands.
At least three core holes are planned to be drilled in each of ER 272 and ER 270 during the December quarter in 2022 and the succeeding March quarter in 2023.