Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) is buoyed by the growing potential of core well 270-03C to deliver commercial gas supply in energy-hungry South Africa with the latest development being strong results from gas desorption testing and wireline logging.
The tests achieved gas content of more than 10 cubic metres per tonne, and rising, while wireline logging has established 153.5 metres of sandstone pay zones, with coal seams of combined 5.75-metre thickness encountered.
Near Lily pipeline
Not only do the ongoing tests support Kinetiko’s strategy to satisfy some of South Africa’s growing demand for energy through its onshore gas exploration and production development activities, but core well 270-03C is also extremely well located.
The well, which spudded on January 24, 2023, is only around 7 kilometres from the Lily pipeline, which is the country’s largest gas pipeline.
“Another record breaker”
Kinetiko CEO Nick de Blocq said: ”The second of our three core hole campaign in Block ER270 has reinforced our deliberate mapped-out drill program in a big way! Yet another record breaker, in fact.
"Cutting over 150 metres of gas pay, finding reservoir sands in the Dwyka formations a group of one of four geological groups that compose the Karoo Supergroup and samples heading north of 10 after only a month in the lab are wonderful indicators of a very commercial field on the doorstep of both the Lily pipeline and the thermal industries and GTP engines within Newcastle itself.
"We honestly could not be happier with the outcome!”
Ongoing testing
Core well 270-03C is undergoing gas desorption testing and wireline logging with the results indicating strong potential for gas field development.
Ten coal samples are continuing to desorb in test canisters with one now more than 10 cubic metres per tonne and rising after one month. Coals of combined 5.75-metre thickness continue to be desorption tested.
Kinetiko said that such a high content was caused by proximity to a dolerite dyke, which was hot, molten rock when it intruded the sedimentary section.
The intense heat altered the amount of gas the coal can hold in an adsorbed state and increases the amount of gas coals which will add to the production from the primary sandstone reservoirs.
The company said this anomaly had been observed in a number of wells completed on the project.
Strong gas-effect crossover
Tests demonstrate that there is strong gas-effect crossover of the density and neutron porosity curves between 288 to 574 metres which adds up to 153.5 metres in combined gassy sandstone thickness.
This does not include sandy zones with a weak effect or zones less than 1-metre thick, which may also contribute gas in a producing well.
The average depth of these sandstone reservoirs is 150 metres deeper than the Korhaan production wells to the north.
Kinetiko said this added depth should increase the pressure and volume of gas flow in a future production well in this new area, relative to the Korhaan area.
Core well 270-03C is the first hole where the company has seen reservoir-quality sandstone in the glacial Dwyka Formation (below 561 metres). It has always been poorly sorted and tight in the other wells, but adds a deep additional pay zone in this area.