Kinetiko Energy Ltd (ASX:KKO)is set to kick off its Amersfoort gas-to-power (GTP) Project in South Africa after successful drilling and securing necessary licence approvals at the Korhaan wells.
The program entails using existing wells at Amersfoort to produce gas to an in-field, containerised generator linked to the existing grid running through the farmlands.
The first phase of commissioning and testing will be undertaken to target one megawatt of output at the project.
Subsequently, further phases are planned for the upgrading of the conductors and transformers to enable scalable modular increased output to five megawatts.
“Supply increasing power output”
Kinetiko CEO Nick de Blocq said: “The overall gassy sandstone geology evidenced by logging and testing the three new Korhaan wells has given us a lot of confidence that we have long-term feedstock support for the Amersfoort Gas to Power (GTP) project; with further cluster development available to supply increasing power output to an extremely energy-hungry nation.
“This conviction has also spread to achieving maiden gas reserve certification and we have now engaged Sproule B.V. to undertake this assessment and certification.”
Korhaan Wells
The Korhaan project exploration focused on gas-laden sandstones, coal and other carbonaceous structures over an interval of 130 metres to 450 metres.
In all three wells, gas was produced from the upper zones immediately under the cased dolorite and continued to produce gas almost all the way down to terminal depth in each case.
Korhaan-3 and Korhaan-4 have tested at commercial production rates, while Korhaan-5 appears to have landed in a smaller compartment, which is supported by a neighbouring large compartment, separated by a thin dyke wall, and currently has provided sub-commercial flow rates.
Gas from Korhaan-5 can be used to supplement the GTP project, but plans are being assessed to re-drill the well using a slant hole to break through the dyke into the neighbouring compartment and optimise gas flow potential.
Maiden gas reserve
Kinetiko has engaged the independent gas certification group, Sproule, to provide an independent evaluation of the gas reserves and resources of exploration right 271.
The area of ER 271 is 1,287 square kilometres, bringing the total exploration rights and applications of the company to 6,998 square kilometres.
Looking ahead, the Sproule report is estimated to be completed before the end of October 2022.
Forward plan
Kinetiko’s exploration program is set to kick off again with a core hole planned for September 2022.
Aeromagnetic surveys flown have illustrated strong targets for potential gassy compartments in the region, and the company has reached an agreement with the local landowner for site access to conduct drilling during the September quarter of 2023.
Further exploration core holes are planned on ER 272 near the Secunda synthetic fuel plant owned by Sasol and on ER 270 where aeromagnetic surveys have identified the most prospective gassy compartment targets.
At least three core holes are planned to be drilled in each exploration right during the December quarter this year and the March quarter next year.
