Kinetiko Energy Ltd (ASX:KKO) has passed a key milestone with the spudding of core hole KV-14C within sight of the Majuba power station in South Africa and which has strong potential to provide a supply source to the gas generator within the power station complex.
The hole spudded on September 21 and the conventional gas and coal bed methane explorer aims to test the productivity potential of the surrounding gassy geology.
It is the first of seven core holes programmed to be drilled by Kinetiko over the next 4-5 months as the company continues to focus on identifying further gas-laden sandstones, coals and other carbonaceous structures in a region and country hungry for additional energy.
“Of great significance”
Kinetiko CEO Nick de Blocq said: “Core hole KV-14C is of great significance as it represents the restart of our exploration program with a core hole very close to Majuba Power Station, which has a 20MW gas generator awaiting a source of fuel.
"This will be followed by at least another six boreholes in both the northerly and southerly parts of our Rights areas within the coming months.”
Kinetiko expects to core the entire stratigraphical profile from the surface, through the dolerite and lower gassy sediments, to an approximate terminal depth of up to 450 metres.
On completion of the drilling, the company will log the borehole and perform onsite gas emission and desorption analysis.
Core well KV-14C being drilled with the Majuba Power station in the background.
About Majuba Power Station
Majuba Power Station between Volksrust and Amersfoort in Mpumalanga, South Africa, is a coal-fired power plant operated by Eskom.
It has three 665 MW dry-cooled and three 716 MW wet-cooled power generation units with a total installed capacity of 4,110MW.
In addition to coal, the Majuba Power Station can be fired by syngas which was originally designed to be produced from underground coal gasification.
“Positive narrative” on gas
"This drilling campaign forms part of our response to the very positive narrative from both the South African President and the CEO of Eskom regarding the need for domestic South African gas.
"The value of gas in any energy transition is absolutely clear due to its decarbonisation effect and its ability to support other means of energy creation.”
Future work plan
Kinetiko plans further exploration core holes on Exploration Right 272 (ER 272) near the Secunda synthetic fuel refinery owned by Sasol and on Exploration Right 270 (ER 270) in the south where aeromagnetic surveys have identified the most prospective gassy compartment targets.
The southerly dipping geological basement is anticipated to provide deeper, higher-pressured gassy sands in ER270.
At least three core holes are planned to be drilled in each of ER 272 and ER 270 during the fourth quarter of 2022 and the first quarter of 2023.