Kinetiko Energy Ltd (ASX:KKO) announcement overview

Kinetiko Energy Ltd (ASX:KKO) has commenced the mobilisation of the Prakla RB 40S rig to well 271-23PT for the first of five production test wells. The drilling is set to begin the week commencing 23 September 2024, with the completion and first gas flow results expected in October 2024. The program aims to intersect multiple gas reservoirs and optimize gas reserves certification, strategically located adjacent to existing energy transmission infrastructure and potential off-takers.

Executive Chairman's commentary on the production test program

The commencement of the rig mobilization signals the start of a high impact five well production test program for the Company. With drilling set to commence on well 271-23PT, we remain poised to unlock the potential of the existing 6 TCF Contingent Resource (2C) discovery within the Mpumalanga Province, which, following this program, is expected to grow significantly. The production testing program will provide invaluable data on flow rates and depletion curves, essential for modelling the economics of future production clusters. Well 271-23PT is located 5km to the East of a major power station and commercial gas flows will confirm the potential of Kinetiko to locate producing gas fields adjacent to critical infrastructure and off-takers.

Summary of Kinetiko Energy Ltd's production well program

Kinetiko Energy Ltd (ASX:KKO) has initiated the drilling of five separate production test wells, aiming to individually flow-test each for up to 90 days. The program is expected to confirm the potential of reservoir dynamics and future gas field development. The wells are strategically located based on previous exploration success and are adjacent to existing energy infrastructure, with each having the potential to be the first well to be developed in a future production cluster gas field. The Company plans to provide regular updates on the drilling and flow testing results of each individual well as the program progresses.