Kinetiko Energy
Kinetiko Energy (ASX: KKO) is targeting coal seam gas in South Africa, focusing initially on the Eastern Transvaal coalfield, which is one of the biggest and geologically well understood within the country.
Kinetiko Energy pens in 1.12Tcf South African coal seam gas resource, eyes conventional upside
Monday, February 06, 2012 by Bevis Yeo
Kinetiko Energy (ASX: KKO) could enjoy some conventional gas upside from its Amersfoot project in South Africa, where it has established a contingent coal seam gas resource of 1.12 trillion cubic feet of gas.
Preliminary petrochemical analysis of wireline logs from the KA-02, KA-04 and KA-06 wells suggested that conventional gas may be present in some sandstone and mudstone intervals.
Conventional gas was not included in the estimate provided by independent experts Gustavson Associates and could provide major upside.
Gustavson had provided the CSG resource estimate based on the first 3 of 4 holes it has completed.
The 4 holes are part of a wider 16 hole core drilling program aimed at determining the methane content in the target coal and carbonaceous shale sequences identified by 1980s coal exploration drill holes. A fifth hole was abandoned due to technical issues.
Kinetiko will drill the remaining 3 holes in the 56ER licence by the end of March and is waiting on Government approval to drill 8 holes in the 38ER licence.
The project is strategically located close to the major population and manufacturing centre of Johannesburg, and is surrounded by a major portion of the country's energy generation infrastructure and the coal and gas to liquid fuels industry.
Boosting the prospectivity of the area, the historic underground colliery operations are 10 kilometres from the town of Amersfoort which has indicated gas contents and coal seam conditions.
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