💥 Fed cuts sparks mid cap boom! ProPicks AI scores with 4 stocks +23% each. Get October’s update first.Pick Stocks with AI

Kinetiko Energy spuds first of five wells in gas production test program on South African licences

Published 30/09/2024, 03:21 pm
© Reuters.  Kinetiko Energy spuds first of five wells in gas production test program on South African licences

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.”

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.