Kinetiko Energy’s 270-3C is the third core well to encounter significant gas intersects at the company’s ER270 acreage, following gas results from its core 270-05C and 270-06C wells, which are anticipated to reach similar terminal depths and develop a fairway for future gas production in South Africa.
“The results of these three core holes have been tremendous and, in some ways, beyond our expectations,” stated Kinetiko Energy CEO Nick de Blocq, adding, “We will follow exploration in this block to continue expanding our knowledge of the sub-surface in this region as we have further approved sites on which to drill and create further extensions to the huge gas fairway already proven.”
A second coring rig has been contracted to expediate exploration across the tenements in ER270. Following completion of the core wells in each block of the exploration area, these rigs will mobilize to Kinetiko Energy’s ER 272 in late-April, where they will drill in proximity to global chemicals and energy company, Sasol’s, liquid fuels refinery in Secunda, Mpumalanga Province.
“Northernmost Block ER272 is in the vicinity of Sasol’s liquid fuels refinery at Secunda and they are watching with great interest as a potential source of much-needed gas for their conversion from coal to liquids (CTL) and gas to liquids (GTL),” de Blocq said.
Meanwhile, tenders have been launched for larger rigs to complete nine wells on the 1,288km2 ER271, with Kinetiko Energy having engaged environmental consulting company, SLR Consulting, in preparation to transform the block from an exploration to a production right in the second half of 2023.
With the nine holes having been approved by the Petroleum Agency of South Africa, five wells in ER271 are earmarked for producer status, while four have been allotted as full appraisal wells with producer potential.
“These will provide us with at least nine wells under the initial contract scope – all of these are situated within our Block ER271, the initial target block for production,” continued de Blocq, concluding, “We are working with the regulators to achieve an expedited evaluation process, and the possibility of receiving our production right within this calendar year is something we are looking to achieve.”