Kinetiko Energy (ASX: KKO) has reported continued progress in its production test well program, with sustained gas presence and observed gas flaring in both wells. The second production test well, 271-KV06PT, has reached its terminal depth of 631m and has successfully flared gas, confirming increasing gas production. The first production test well, 271-23PT, which was initially thought to have intersected a small, well-sealed compartment, has now demonstrated growing gas presence, revising the earlier assessment.
Ongoing observations indicate that gas flow is steadily improving over time, aligning with continuous gas indications recorded throughout the drilling process. Based on these results, Kinetiko has initiated a drilling optimisation study to assess the extent to which drilling procedures may have created a temporary gas blockage or “skin” effect in the well bore, potentially restricting initial gas flow. The study is already underway, with core samples and data sent to Perth for laboratory testing.
The company has noted that as elements of this blockage begin breaking down, gas production is increasing. To enhance future extraction, Kinetiko has engaged industry experts to independently assess the drilling and testing results. The findings will be integrated into geological modelling to refine well design and improve production techniques.
Despite initial drilling challenges, Kinetiko maintains a 100% success rate in encountering gas across all drilled wells, confirming the presence of gas throughout its exploration area. The company expects the current five-well testing program to support future resource growth, building on its existing 6 TCF (2C) contingent resource.
Following the completion of the drilling optimisation study, the company plans to continue production well testing before shifting focus back to the Amersfoort region, where it is working with the Industrial Development Corporation to develop a producing gas field.
“We start 2025 with very positive news of gas flaring from the second production test well (271-KV06PT) and stronger gas observations from the first production test well (271-23PT),” said Kinetiko Executive Chairman Adam Sierakowski. “The findings reaffirm that gas is present in every well drilled in the history of the company and support the thesis that the gas-bearing geology is ubiquitous through the exploration rights, which supports the development of multiple future gas fields.”
