Kinetiko Energy Ltd (ASX:KKO) has spudded its first core well in the Southern Exploration Right 270 in gas-hungry South Africa, designed to test the potential of the southerly dipping basement structures.
The new core well, 270-06C, is about 90 kilometres south of recently completed successful core well 271-23C and is anticipated to encounter deeper sandstone and coals.
Moving forward, Kinetiko is continuing an aggressive drilling program to focus on identifying further gas-laden sandstones, coals and other carbonaceous structures and extend the continuity of potential gas fields
Gas-rich exploration boreholes.
Kinetiko CEO Nick de Blocq said: “This borehole represents the first of many we have planned in this area.
“The results of this coring are awaited with great anticipation and we have confidence in our theory to discover higher pressures and gas flow rates with another successful effort in our growing list of gas-rich exploration boreholes.
“The proximate location of our southernmost boreholes to the steel-smelting and manufacturing centre of Newcastle could mean a simplified logistical solution to get the gas to an increasingly hungry market."
Forward plan
Kinetiko expects to core the entire stratigraphical profile from the top of the dolerites to an approximate terminal depth of beyond 500 metres.
On completion of the drilling, the company will log the borehole and perform onsite gas emission and desorption analysis.
The Karoo sequences are known to dip southwards in this region and therefore Kinetiko expects to encounter deeper terminal depths in the southernmost boreholes, with concurrently higher pressures and gas flow rates versus its discoveries to the north.
This core hole which will be followed by others in the next few months is being drilled to test this theory as well as provide a new facet to the company's eventual production plans.