Page 15 - AfrOil Week 41 2022

AfrOil PROJECTS & COMPANIES AfrOil

Kinetiko strikes gas in well

near South African power plant

SOUTH AFRICA ASX-LISTED Kinetiko Energy said on October our mid-ER271 gas,” he commented.
12 that it had struck gas in Core Hole 271-23C, “Majuba is designed to co-fire coal and gas,
a well drilled near the Majuba thermal power and they have a gas-fired generator in their
plant (TPP), within the framework of its Amers- complex. It was very encouraging when we first
foort exploration project in South Africa. sensed gas in the fractures of the deep dolerite
Kinetiko said in a statement that Core Hole sill, and the source became obvious as we broke
271-23C, formerly known as KV-14C, had through to the sediments below.”
“intersected strong gassy geology” at depths of He also touted Kinetiko’s ongoing success
more than 320 metres below the surface begin- in exploration, saying: “What we are also doing
ning on September 21. here is maintaining our 100% strike rate. Every
It reported that it had drilled through doler- one of our 30 boreholes has cut gas, proving the
ite to a depth of 227 metres before reaching car- productivity of the compartmentalisation of the
bonaceous zones and explained that gas shows sediments in our [exploration] rights areas.”
had become more obvious at depths below 270 De Blocq also hailed the progress of his com-
metres, appearing in so-called “zebra” forma- pany’s plans for acquiring Badimo Gas (Pty)
tions consisting of carbonaceous mud matrices Ltd, which owns a 51% equity stake in the South
striped with coals, sand and siltstone. African exploration rights tied to Kinetiko’s
The company did not describe the nature of assets. He referred to the notice in the statement
the gas, though it did say that its wellsite geolo- that Kinetiko had submitted all the documen-
gist was carrying out emission and desorption tation needed by the ASX and ASIC exchanges
analyses. It also stated that it intended to log the to approve the takeover and said his company
borehole and analyse its results after wrapping was on track to wrap up the transaction in late
up drilling in order to tie the well into regional November, after its shareholders’ meeting.
stratigraphy. Assuming that shareholders approve the deal
Additionally, it announced that it was in as anticipated, Kinetiko will have a 100% stake
the final stages of negotiations with Sproule, a in Badimo, as it finalised the acquisition of Afro
Canadian energy consultancy, on the delivery of Energy, which had the other 49% of the South
a report certifying its maiden gas reserves. Kine- African exploration rights, earlier this year.
tiko is now expected to obtain certification for its “The imminent completion of our merger
reserves in about six weeks, the statement said. and obtaining our maiden reserves report will
Nick de Blocq, Kinetiko’s CEO, called the be major milestones in our journey, and we
gas shows in a well so close to the Majuba TPP await these with great anticipation as we keep
a promising sign. The Amersfoort project has the company moving forward in a distinctly
strong potential to become a source of feedstock positive direction,” de Blocq said.
for South Africa’s power-generating sector, he Kinetiko is focused on the development of
said. shallow conventional gas reserves and coal-bed
“Placing the initial core hole of our return to methane (CBM) deposits in South Africa. It is
exploration activities so close to [the] Majuba carrying out the Amersfoort project in South
power station opens a new potential market for Africa’s Mpumalanga province. ™

The well was drilled within the framework of the Amersfoort project (Image: Kinetiko Energy)

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