Kinetiko Energy (ASX: KKO) is resuming its efforts to develop a critical gas supply for energy-scarce South Africa. Recent flow problems encountered during testing at its shallow conventional gas projects in the Mpumalanga province are being addressed through optimized drilling techniques. Laboratory tests suggest that inhibited gas production from recent wells was related to mechanical issues rather than geological impediments.
Oilfield Technologies Australia (OTA) conducted simulations, revealing that prior drilling techniques had significantly impaired gas flow performance. Recommendations include minimizing water invasion and reducing foam use while maintaining down-hole pressure balance. According to Kinetiko chairman Adam Sierakowski, the company now has a comprehensive understanding of why the first two production test wells failed to deliver expected gas flows. The company anticipates spudding its next production test well in early May, incorporating the new drilling adjustments.
Kinetiko is moving forward with development plans to expand its existing contingent resource of 6 trillion cubic feet (tcf). Following the drilling optimization study, the company will refocus on the Amersfoort region in tenement ER271. Future drilling activities will be conducted as part of a joint venture with the Industrial Development Corporation, the South African government’s infrastructure investment fund, aimed at developing a producing gas field. New wells will be strategically positioned based on prior exploration results identifying extensive gassy pay zones.
