Kinetiko Energy moves on five-well production test program in South Africa

Proactive - Interviews for investors

Kinetiko Energy Ltd (ASX: KKO) executive chairman Adam Sierakowski joins Proactive’s Jonathan Jackson to discuss the significant progress being made in the company’s efforts to develop an energy solution for South Africa, focusing on advanced shallow conventional gas projects in the Mpumalanga Province. The company has provided an update on its onshore gas exploration and production development activities. Site preparation has started for the first of five production test wells, with conductor casing and water monitor well drilling underway. This initial phase of preparation is expected to be completed within four weeks. Following this, the production test drilling rig is anticipated to be mobilised to the site in late August, with the spudding of the first well, 271-23PT, scheduled for early September. The nine-month program involves the sequential completion of five production test wells, with the objective of conducting extended flow testing on each well. Bottom hole targets for these wells have been carefully selected to interpret multiple gas reservoirs and optimise gas reserves certification. Additionally, the strategic location of these wells, adjacent to existing energy transmission infrastructure and off-takers, enhances their potential impact. Sierakowski highlighted the importance of this program, describing it as a transformative step forward for the company. With site preparations in progress and drilling set to start soon, Kinetiko is poised to unlock the potential of the existing 6 TCF Contingent Resource (2C) discovery within the Mpumalanga Province. This resource is currently equivalent to 1 BBOE and is expected to grow significantly. Each well has been strategically positioned to optimise gas reserves certification and is near existing infrastructure, making this program a critical milestone towards demonstrating the commercial viability of the basin. Core well drilling adjacent to the first production test well, 271-23PT, has already discovered 131.5 metres of gassy pay zones, as announced on November 30, 2022. The production testing program will provide invaluable data on flow rates and depletion curves, which are essential for modelling the economics of future production clusters. #ProactiveInvestors #KinetikoEnergy #ASX, #GasExploration, #Mpumalanga, #EnergySolution, #GasProduction, #SouthAfrica, #ShallowConventionalGas, #ProductionTestWells, #SitePreparation, #DrillingProgram, #EnergyInfrastructure, #GasReserves, #ContingentResource, #AdamSierakowski, #FlowTesting, #GasReservoirs, #EnergyTransmission, #EconomicModelling, #ProductionClusters #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews