Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has begun mobilising the Prakla RB 40S rig to well 271-23PT, following the completion of on-site well-pad preparation, conductor casing installation and water monitoring well drilling.
The production test drilling rig is scheduled to spud next week, with completion and initial gas flow results anticipated in October 2024. The program will see five consecutive production test wells drilled, with the objective of conducting extended flow testing on each well.
The wells have been strategically positioned to intersect multiple gas reservoirs, optimising gas reserves certification. They are also located close to existing energy transmission infrastructure and potential off-takers, enhancing their commercial potential.
"The commencement of the rig mobilisation signals the start of a high impact five well production test program for the company. With drilling set to commence on well 271-23PT, we remain poised to unlock the potential of the existing 6 TCF Contingent Resource (2C) discovery within the Mpumalanga Province, which, following this program, is expected to grow significantly,” Kinetiko executive chairman Adam Sierakowski said.
“The production testing program will provide invaluable data on flow rates and depletion curves, essential for modelling the economics of future production clusters.
“Well 271-23PT is located 5 kilometres to the east of a major power station and commercial gas flows will confirm the potential of Kinetiko to locate producing gas fields adjacent to critical infrastructure and off-takers."
Five test wells
Kinteko plans to drill five separate production test wells, which will undergo individual flow tests for up to 90 days.
Indicative production well locations.
The flow test results are expected to provide confirmation of reservoir dynamics and future gas field development potential.
The locations of these five wells were chosen based on successful past exploration efforts. Previously, the company completed a core well near 271-23PT, where logging results indicated 131.5 metres of gassy sandstone pay zones, as announced on November 30, 2022.
The wells are situated close to existing energy infrastructure, including a power station, gas pipeline, transmission lines and potential offtake customers. Each well holds the potential to be the first to be developed in a future cluster gas field.
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