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,
is pleased to provide the following 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 plant 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.”
Gas Intersects in Core Wells 272-01C and 272-02C
The logging results from the first two core wells in ER272 are very promising establishing that
ER272 has a higher ratio of gassy sandstone than the other areas the Company has explored.
These results have yielded in both core wells another 100m plus net pay, just like many core
wells in ER271, but with lower costs per well due to the shallower depth.
Core well 272-01C was the first gas exploration hole in Northern ER272, less than 100m from
the Lily Gas Pipeline and results established a substantial sandstone gas interval of 101m. Figure
1 shows the sandstone intervals (pink shading) identified by gas effect of cross-over between
the neutron porosity curve (blue line on right track) and the density porosity curve (red line on
right track).
The logging results from core well 272-02C established greater sandstone intervals compared
to core well 272-01C of 117m. Figure 2 shows (pink shading) identified by gas effect of crossover between the neutron porosity curve (blue line on right track) and the density porosity
curve (red line on right track). This is the second gas exploration hole in ER272.
This announcement is authorised for release to the market by the Board of Directors of Kinetiko
Energy Limited.
