Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has made a promising start on its 2024 onshore gas exploration activities in the Mpumalanga Province, South Africa.
The first core hole of the year, 270-08C, spudded on January 22 north of Memel, has uncovered extensive gassy sandstone intervals and large coal seams, affirming the potential for a substantial gas resource play in the region from which Kinetiko is hoping to help satisfy the nation's growing demand for energy.
Energy transition solution
The company's aim is to commercialise an energy transition solution for South Africa, leveraging the region's extensive gassy coal basins and growing gas demand to establish a world-class onshore gas project.
Kinetiko CEO Nick de Blocq said: “Following an incredibly successful exploration program in 2023 the company spudded the first borehole of the year at 270-08C, slightly north of the town of Memel.
“I am delighted to report that early indications from observations of gassy core samples show a huge gassy interval at depth.
“Coring is currently deeper than 600 metres with terminal depth (TD) expected around 700 metres. The coring has reached depths exceeding 600 metres, with the terminal depth expected around 700 metres, promising to unlock deeper, high-pressure gas-bearing sandstones and coal sequences.”
Situated 17 kilometres north of Memel, close to major infrastructure including the high voltage grid and the Lily Pipeline, core well 270-08C is strategically positioned to test the sediments overlying the basin structures dipping southward.
This drilling venture aims to establish a continuous geological model across the exploration rights area and expand the gas resource play within conventional sandstone reservoirs sectioned by dolerite.
Three-metre core run from 517 metres. 'Zebra' sandstone/siltstone/mudstone displaying residual gas bubbles, with higher bubble concentrations where there are thin coal bands.
Significant, deep gas
The exploration efforts have revealed gassy sandstone intervals below 500 metres, with gas emissions observed from coal and sandstone cores. This indicates significant gas contents ranging between 2 and 4 cubic metres per tonne.
The upcoming completion of the hole and wireline logging is expected to further confirm the abundance of gas-bearing zones at depths surpassing 477 metres.
This phase of exploration in ER270 is set to include two more core wells in 2024, underlining Kinetiko's commitment to advancing shallow conventional gas opportunities in South Africa.
MAIN IMAGE: The 270-08C exploration coring site in late February 2024, where dolerite sills were encountered down to 477 metres.