HIGHLIGHTS
• Wireline logging results have established 147m of gassy sandstone pay in the
vertical profile, being even greater than that reported in the previous Majuba
core well (~131m)
• Strong results from gas desorption testing from core hole 270-06C achieving
gas content of nearly 7m3/t and rising
• Drilling of core hole 270-06C has intersected strong gassy sediments in
targeted carbonaceous geology extending the potential contiguous gassy
sandstone geology south from core well 271-23C by approximately 64km
Kinetiko Energy Ltd (Kinetiko or the Company) an Australian gas explorer and
developer focused on advanced shallow conventional gas and coal bed methane in South Africa,
is pleased to provide the following update on its onshore gas exploration and production
development activities.
Core hole 270-06C, spudded on 3 November 2022 in proximity to the gas markets around the
steelmaking and manufacturing centre of Newcastle, South Africa and successfully completed
in mid-December 2022, has nearly completed gas desorption testing and wireline logging
results that indicate strong potential for gas field development.
Kinetiko CEO, Nick de Blocq, commented:
“Our current coring campaign is continuing the trend of success across the extent of blocks
ER271 and ER272. Following the record-breaking result of core hole 271-23C, our efforts in
exploration block ER270 were well rewarded with a huge gas cut of the organic sediments,
proving our theory that the deeper wells to the south would produce increased volumes for
potential future production fields. We are currently drilling a core well at site 270-03C and will
follow this borehole immediately with our third core hole in block ER270 and then move the
rig into block ER272, to start our exploration program in our northernmost block, in the
proximity of Sasol’s gas processing plant at Secunda. “
Growing Geological Potential
Core well 270-06C is approximately 64km south of the successful Majuba core well 271-23C and
grows further confidence of the continuity of the intersected strong gassy geology and potential
for gas production development through a fairway of approximately 125kms (Figure 1).
Gas Testing Results 270-06C
The geophysical wireline log overlays the density (black) and neutron (blue) curves at depth.
The wireline log in Figure 2 (left) shows
four (4) major features of the 270-06C
exploration hole:
• The dolerite sill cap rock provides a
vertical gas seal down to 240m
above the sedimentary rock below
• The low natural gamma radiation
on the left sides is highlighted
yellow to emphasise the sandstone
reservoir layers
• On the right sides, the seams of coal
are displayed with low density
• And the best feature of all is in the
middle, the gas-effect crossover in
the sandstones, shaded red,
interbedded with carbonaceous
layers without the gas effect
Below the dolerite, most of the formations
are either gas source rock or gas reservoir
rock.
The curves diverge in the presence of gas-filled porosity (red shading). Between 240-490m,
below the dolerite intrusive cap rock, there is about 147m of sandstone which strongly exhibits
this gas effect. This was confirmed by observations of residual gas in the core as it came out of
the hole.
Only 2 coal zones were thick enough to desorb, from about 273m and 337m. They are still being
measured for gas content but are approaching 7 and 5 m³/tonne respectively, and still climbing.
The coals are very thin here, but the siltstone and mudstone zones between the sandstones are
quite carbonaceous and are the source of most of the gas.
The gassy sandstones in this hole compare very favourably to Kinetiko’s other project areas,
where test wells have produced commercial rates of gas flow. This proves that the assessed
“Sandstone Resource Play” extends much further to the south. Other Resource Plays (CSG and
shale gas) target low-permeability unconventional reservoirs which require fracking. This
project combines traditional sandstone reservoirs, interbedded carbonaceous siltstones and
mudstone source rock and the unconventional trapping mechanism of igneous dolerite dykes
and sills. This has produced an area of thousands of km² underlain by shallow sandstone gas
deposits, tapped by low-cost wells without fracking.
This announcement is authorised for release to the market by the Board of Directors of Kinetiko
Energy Limited.