The well is located near essential energy infrastructure, including the Lily pipeline. The company added that the well represents a key milestone in its ongoing efforts to commercialize its advanced shallow conventional gas projects.
Kinetiko's five-well production test program aims to gain valuable insights into the behavior of its gas fields. As South Africa seeks alternative energy sources, this program is crucial for tapping into Kinetiko's substantial six trillion cubic feet (Tcf) 2C contingent resource gas reserves, the company said.
"The spudding of our second well in this five-well production test program is ahead of schedule. We continue our search to demonstrate the commercial viability of our vast gas resources and contribute to South Africa’s urgent need for cleaner, more reliable energy solutions”, Adam Sierakowski, Kinetiko Executive Chairman, said. “We expect this test program to provide invaluable data on flow rates and depletion curves. These results will underpin the expansion of our gas reserves and pave the way for future production clusters".
Kinetiko said that completion and initial gas flow results are anticipated in November 2024. The company aims to complete each well within four weeks before running dewatering and gas flow testing for up to 90 days to determine flow rates and depletion curves.
“Based on prior reserves calculations, a flow rate of 50,000 SCF/day has been assumed, with the aim of exceeding this threshold and significantly improving the project's commercial metrics,” Kinetiko said.
Kinetiko's well locations are strategically chosen based on previous successful exploration efforts that identified significant gas-bearing zones, the company said.
