Kinetiko Energy's South African drilling update

Kinetiko Energy (ASX:KKO) has completed the drilling of its first production test well, 271-23PT, in South Africa's Mpumalanga Province. The well, part of a five-well program targeting shallow conventional gas resources, did not produce commercially viable gas due to a geological anomaly. Despite this, Kinetiko remains optimistic and has already mobilized its drill rig to the second well site.

Outlook on Kinetiko Energy's drilling program

Kinetiko Energy has completed its first production test well in Mpumalanga Province, South Africa. Despite not finding commercial gas, the company is optimistic about the next four wells, which are strategically placed based on historical data. The drilling program focuses on low-cost shallow wells to maximize the potential for discovering commercial gas. The second well is set to be drilled near the Lily pipeline. Positioned near infrastructure, Kinetiko aims to gather data from flow tests to guide future developments and expects to exceed flow rate targets of 50,000 SCF/day for each well. Kinetiko's approach benefits from cost efficiencies, supporting their broader goal of expanding onshore gas resources in South Africa.

Executive commentary on drilling results

Although the first well did not yield commercially viable gas, we remain confident in the potential of the remaining wells. Our strategy of low-cost drilling and strategic positioning near existing infrastructure enhances our market potential.