Highlights
- The first two core wells in ER272 near the Secunda refinery has been successfully completed
- Wireline logging results have established significant sandstone gas intervals in both wells of over 100m
- Accelerated dual rig exploration continues with two further core wells expected to be spudded in ER272 this week
- Core well situated only a few kilometres from major South African energy infrastructure.
KINETIKO Energy Ltd, an Australian gas explorer and developer focused on advanced shallow conventional gas and coal bed methane in South Africa, an update on its onshore gas exploration and production development activities.
Core well 272-01C and 272-02C spudded in early May and in close proximity to both Sasol’s Secunda refinery (potential gas off taker) and South Africa’s largest gas pipeline the Lily pipeline, have been successfully completed with logging results indicating strong potential for gas field development.
Kinetiko CEO, Nick de Blocq, commented: ”It is always very rewarding to enter a new exploration block and have such an unexpectedly high level of success in the initial core holes. The TD (Terminal Depth) was shallower than what we encountered further south, just as predicted, due to the sloping nature of the Karoo basement structures; so the logged stratigraphy returning over 100m of gassy pay in both 272-01C and 272-02C was a most encouraging outcome. We are in the process of moving the two core rigs to sites 272-06C and 272-08C due to the logistical expedience of proximity, and we have no reason to expect anything but success from these core holes as well. Of course, the strategical placement of the current exploration effort so close to Secunda is obvious. Sasol runs one of the world’s biggest and best Coal-To-Liquids plants at Secunda, and they have stated their need to move towards a Gas-To-Liquids conversion as they reduce pollution whilst increasing the quantum of their fuels output going forward. We absolutely expect to be a large part of that positive evolution towards greener liquid fuels.”
