Kinetiko Energy discovers gas in South African wells

Kinetiko Energy Ltd. discovered gas shows in three wells on the Korhaan project in the Amersfoot Permian age coal fields in South Africa.

Drilling and logging has been completed across the wells and indicated substantial consistence in the carbonaceous geology. Gassy production sections start at 130 m (Korhaan-4), 150 m (Korhaan-5), and 177 m (Korhaan-3). All three wells reached similar terminal depths of 435-450 m.

Korhaan-3 reached a total depth of 449 m after encountering tight formation. While gas was initially detected at 177 m, it showed more strongly from 265 m downwards, going off the inline meter scale (>10,000) ppm.

Logging is complete and analysis is underway. Initial indicators are good and show significant gassy sand intervals and several coal stringers. All three wells will be flow tested with long flow and shut-in periods. Each well is expected to take 8-10 days to test.

Operations were suspended for 2 weeks after a lightning strike on the Korhaan-5 wellhead resulted in damage to the communication systems to the downhole pump. Flow tests are expected during the last week of February.

The three wells have been established over a small percentage of the first of 79 potential gas compartments in Amersfoot identified so far by aeromagnetic surveys.