KINETIKO Energy Ltd the Australian gas explorer and developer focused on advanced shallow conventional gas and coal bed methane in South Africa, provides the following update on its onshore gas exploration and production development activities.
Core hole 271-23C spudded on 21 September 2022 in the vicinity of Majuba power station (Mpumalanga) intersected strong gassy geology in the sediments.
Kinetiko CEO, Nick de Blocq, commented: “Placing the initial core hole of our return to exploration activities so close to Majuba power station opens a new potential market for our mid-ER271 gas. Majuba is designed to co-fire on gas.
“It was very encouraging when we first sensed gas in the fractures of the deep dolerite sill and the source became obvious as we broke through to the sediments below.
“What we are also doing here is maintaining our 100% strike rate. Every one of our thirty boreholes has cut gas, proving the productivity of the compartmentalisation of the sediments in our Rights areas.
“The imminent completion of our merger and obtaining our maiden reserves report will be major milestones in our journey and we await these with great anticipation as we keep the Company moving forward in a distinctly positive direction.
“Core hole 271-23C reached terminal depth at 478m on 21 October having drilled through a deep lobe of dolerite to 227m before breaking through to carbonaceous zones. We are aware, from aeromags surveys, that the dolerite sill undulates and we have encountered a thick sill section in this borehole. However, experience dictates that thicker sills can mean deeper sands and therefore the terminal depth of this hole proved to be deeper than the recent Korhaan wells.
“Gas shows became stronger below 270m with “zebra” formation: coals, sand and siltstone striped with carbonaceous mud matrix. Onsite gas emission and desorption analysis was performed on the core samples by our wellsite geologist. On completion of the drilling the Company logged the borehole and will analyse the results, tying in with regional stratigraphy.
Documentation Completion
“The Company has lodged with the ASX and ASIC all documentation for approval for release of the notice of meeting for the shareholders of Kinetiko to approve the acquisition of Badimo Gas (Pty) Ltd which holds a 51% interest in the South African exploration rights, held by Afro Energy. On successful completion of the shareholders meeting scheduled for late November 2022, Kinetiko will become the 100% owner of Afro Energy” he concluded.
