Kinetiko reports gas intersections in SA gas exploration wells

Australia’s Kinetiko Energy on June 13 announced positive results from its onshore gas exploration and production development activities in permit ER272 in South Africa. The company successfully completed the drilling of core wells 272-01C and 272-02C, which were spudded in early May. These wells, located in close proximity to Sasol's Secunda refinery and South Africa's largest gas pipeline, the Lily pipeline, have shown potential for gas field development.

Both wells, with terminal depths shallower than expected, yielded over 100 m of gassy pay. Kinetiko's CEO, Nick de Blocq, said the company plans to move the two core rigs to sites 272-06C and 272-08C due to logistical convenience and expects continued success in these locations as well.

de Blocq emphasised the strategic significance of the current exploration efforts being located in proximity to Sasol's Secunda refinery. Sasol aims to transition to gas-to-liquids conversion to reduce pollution while increasing fuel production. Kinetiko said it anticipates playing a role in Sasol's evolution towards greener liquid fuels.

Petroleum Agency of South Africa earlier this year granted Afro Energy, a unit of Sydney-listed Kinetiko Energy, renewals on permits 270 and 272. 

Kinetiko is focused on advanced shallow conventional gas and coalbed methane opportunities in Southern Africa. It signed an agreement in December 2021 to acquire 100% of Afro Energy from Badimo Gas. Kinetiko originally owned 49% of Afro, which holds the South African exploration rights and production approvals linked to its assets.