Kinetiko Applies for Sixth Permit in South Africa

South Africa’s oil & gas regulator has accepted Kinetiko’s sixth TCP application (Technical Cooperation Permit) immediately to the east of the current Amersfoort Project. 

Kinetiko’s three pilot production wells are being drilled on the northern Amersfoort Project JV license (56ER) and are scheduled for completion in first quarter of this year. These wells will be followed by two to three more on the southern license (38ER) following regulator approval. The first 2 wells have been completed and are being prepared for additional flow testing. Significant initial gas flows were obtained from coals and gassy sandstones during drilling.

The pilot production wells are being located in areas identified in exploration drilling to contain gassy coal measures and downhole geophysical log indications of conventional gas accumulations in the surrounding sandstones. The pilot production program at Amersfoort will determine gas flow rates and recoverability from which first gas reserves should be defined in Q1 2013.

In addition to Pilot production drilling and testing, two rigs continue to drill exploration core holes on the southern licence (ER38), 6 holes have been completed and 3 more core holes are expected to be completed by early April. These determine pilot production well locations.