Kinetiko Energy Ltd (ASX: KKO) has reported strong gas flow results from its latest extended production test in South Africa, with flow rates significantly exceeding reserve expectations and supporting the company’s LNG pilot plant development plans.
The company confirmed that production test well 271-KA03PT10 at Brakfontein achieved a sustained gas flow of 92 Mscfd over 16 days of continuous testing, delivering a total of 1,422 Mscf during the period.
The gas being produced recorded a methane content of 99 per cent.
Kinetiko described the results as exceeding independent assessments by reserve certifier Sproule B.V., which had assumed a 50 Mscfd initial flow rate per well as the basis for positive commercial economics.
“Kinetiko is pleased to advise that production test well 271-KA03PT10 has successfully completed an extended production gas flow test,” the company stated.
“Flow test results from this well have exceeded expectations and support the commercial viability of the Brakfontein cluster, which will be used to supply the initial LNG pilot plant, which is planned to commence construction in 2026,” said Kinetiko Executive Chairman Adam Sierakowski.
Located within 500 metres of historic test wells at Brakfontein, 271-KA03PT10 is the first well drilled using optimised procedures and forms part of a seven-well production cluster, including well 271-A03PT06.
Once connected to the nearby historic wells, the Brakfontein cluster is expected to supply the planned micro LNG pilot plant.
Data from the extended flow test will also feed into feasibility studies and economic modelling for the wider project clusters.
Testing has now also commenced on production test well 271-KA03PT06 at Brakfontein, where completion operations delivered a peak gas flow of 1,600 Mscfd during choke testing.
Results from the extended flow test are anticipated later this month as the company assesses sustained rates and depletion curve characteristics.
Sierakowski said the results from KA03PT10 demonstrated both flow performance and quality, hailed as a strong indicator for the development program.
“The initial extended flow test results from the first well to implement drilling optimisation procedures are very positive, and testing will continue to ascertain how much the gas flow rate at 271-KA03PT10 can increase as dewatering continues.
“The rate and very high-quality methane content being produced from the well will also improve economics,” he said.
He added that the flow outcomes further support the transition of resources into reserves.
“As the company looks forward to more positive gas flow test results continuing from 271-KA03PT10 and anticipated from 271-KA03PT06, it can look forward to superior gas flow and depletion curve data that will be used to convert the company’s substantial contingent resource to higher reserves.”
The extended flow results mark a significant milestone for Kinetiko’s shallow conventional gas projects in the Mpumalanga Province.
Achieving sustained flow rates above the reserve assumptions of Sproule B.V.’s July 2023 assessment is expected to add materially to the development economics and reserve potential of the Brakfontein cluster.
