Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has begun spudding the first of five gas production test wells on its South African portfolio of gas assets, with expectations to materially increase the company’s gas reserves.
Drilling on well 271-23PT began on Friday – testing is expected to take up to 90 days for each well, gathering essential data on flow rates and depletion curves over time.
KKO expects to field the first results from this testing program in early November, in turn informing certification of new gas reserves and future development clusters.
Contributing to low-emission energy
"The spudding of our first well in this five-well production test program is exciting for Kinetiko and its stakeholders,” Kinetiko Energy executive chair Adam Sierakowski said.
“We are one step closer to demonstrating the commercial viability of our vast gas resources and contributing to South Africa’s urgent need for cleaner, more reliable energy solutions.
“With well 271-23PT located near the Majuba Power Station, we are ideally positioned to deliver gas to key infrastructure.
“We expect this test program to provide invaluable data on flow rates and depletion curves.
“These results will underpin the expansion of our gas reserves and pave the way for future production clusters."
Kinetiko’s South African licences already hold a gas reserve (2C) of 6 trillion cubic feet – the company believes that number will grow sizably with the results of this round of testing.
KKO is strategically placing its wells near key energy infrastructure, enabling swift and cost-effective delivery of its inventories to the relevant markets.
Overall, the company is confident the success of this program will “further de-risk future drilling campaigns and accelerate Kinetiko’s efforts to become a major contributor to South Africa’s evolving energy landscape.”