Oil & Gas

Preparatory work has begun for a plan to drill five gas wells in South Africa, targeting reserves estimated at 6 trillion cubic feet. Australia's Kinetiko Energy has initiated site preparations in Mpumalanga province, with the preliminary phase expected to be completed within four weeks. The production test drilling rig is slated to arrive in late August 2024, and drilling for the first well, "271-23 BT," is scheduled to commence in early September 2024.

The South Africa Gas Well Drilling Program, set to unfold over nine months, will sequentially complete the five production test wells, aiming to perform extended flow tests for each. The company has selected well locations and is currently engaged in wrapping conductors and drilling to monitor water levels as part of the preparatory work.

Adam Sirakovsky, Chairman of Kinetiko Energy, highlighted that this five-well production test program represents a pivotal advancement for the company. He emphasized that with preparations underway and drilling imminent, Kinetiko Energy is positioned to explore the substantial 6 trillion cubic feet of potential reserves in Mpumalanga, which equates to approximately one billion barrels of oil equivalent and is projected to grow significantly.

Kinetiko Energy secured USD 2.2 million in June 2024 to support the drilling of these wells, each of which will be individually flow-tested for up to 90 days. The results are anticipated to validate the potential for developing a future gas field adjacent to the test wells. The strategic placement of each well is intended to enhance reserve certification and optimize proximity to existing infrastructure, providing crucial data on flow rates and depletion curves for future development planning.