Kinetiko Energy (ASX: KKO), a gas and coal bed methane play in South Africa, has flowed gas from a second pilot well at the Amersfoort project.
KA-10PTR produced an estimated gas flow rate of 45mscf/d over the first 10 day period, and is in addition to the previously reported flows of 332Mscf/day from KA-03PTR, eight kilometres.
Importantly the flows support the exploration geophysical logs and coal desorption data, which Kinetiko said indicates widespread gas in coal and conventional gas in adjacent sandstones.
KA-10PTR is now shut in for a pressure build up test and will then be shut in, pending further technical and joint venture negotiations.
Worth noting for KA-10PTR, is that commercial studies indicated that the flow rates of 45mscf/d can be commercial due to the project’s low cost (vertical drilling, completions and production environment) and local gas market demand and pricing.
*Kinetiko's footprint*
Kinetiko has a vast exploration with around 9500 square kilometres is granted and being explored, with the company having also applied for two Technical Co-operation Permits over 6200 square kilometres of prospective tenure and Badimo Gas has around 7100 square kilometres of applications pending for which Kinetiko has an MOU.
In December 2012 Kinetiko Energy completed expenditure of the first ZAR26m (South African Rand) around $3.2 million on the Amersfoort Project as required under the terms of the joint venture agreements.
In accordance with those agreements, Kinetiko has issued monthly cash calls to Badimo Gas in respect of their 51% share of further exploration expenditure on the project
For the year to 30th June 2013, Kinetiko estimate that Badimo Gas is liable to fund $1.5m of exploration expenditure on Amersfoort.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 18 hours ago.
KA-10PTR produced an estimated gas flow rate of 45mscf/d over the first 10 day period, and is in addition to the previously reported flows of 332Mscf/day from KA-03PTR, eight kilometres.
Importantly the flows support the exploration geophysical logs and coal desorption data, which Kinetiko said indicates widespread gas in coal and conventional gas in adjacent sandstones.
KA-10PTR is now shut in for a pressure build up test and will then be shut in, pending further technical and joint venture negotiations.
Worth noting for KA-10PTR, is that commercial studies indicated that the flow rates of 45mscf/d can be commercial due to the project’s low cost (vertical drilling, completions and production environment) and local gas market demand and pricing.
*Kinetiko's footprint*
Kinetiko has a vast exploration with around 9500 square kilometres is granted and being explored, with the company having also applied for two Technical Co-operation Permits over 6200 square kilometres of prospective tenure and Badimo Gas has around 7100 square kilometres of applications pending for which Kinetiko has an MOU.
In December 2012 Kinetiko Energy completed expenditure of the first ZAR26m (South African Rand) around $3.2 million on the Amersfoort Project as required under the terms of the joint venture agreements.
In accordance with those agreements, Kinetiko has issued monthly cash calls to Badimo Gas in respect of their 51% share of further exploration expenditure on the project
For the year to 30th June 2013, Kinetiko estimate that Badimo Gas is liable to fund $1.5m of exploration expenditure on Amersfoort.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 18 hours ago.