In early November 2023, Kinetiko Energy announced its intention to conduct a drilling campaign this year, focusing on five exploration wells primarily within its Block 272, located in Mpumalanga, South Africa.
This initiative aimed to assess the gas potential in the region and contribute to the company’s resource development strategy.
Financial Boost for Gas Activities
On Monday, June 17th, Kinetiko Energy successfully secured $2.2 million in funding to support its ongoing gas activities in South Africa.
These funds will be primarily allocated towards a gas exploration campaign in the Mpumalanga province, reinforcing the company’s commitment to unlocking the region’s energy resources.
Exploration Program Targets High-Yield Gas Zones
The program, slated to commence in the third quarter of this year, specifically involves drilling five exploration wells with the objective of identifying high-yield gas zones within its exploration blocks 271 and 270.
This will be achieved through tests designed to measure the volume of natural gas that each well can deliver, providing crucial data for resource assessment.
Adam Sierakowski, Executive Chairman of Kinetiko Energy, anticipates that the success of these tests will lead to the initiation of formalities for an upward re-evaluation of the certification of natural gas resources and reserves in the region.
This step is essential to demonstrate the potential and economic viability of the existing gas resources.
Implications for Gas Sales Negotiations
Furthermore, this exploration campaign in Mpumalanga could be pivotal in the ongoing negotiations between Kinetiko and the state-owned petrochemical company Sasol regarding the sale of gas resources in the region, including Block 272, in addition to Blocks 271 and 270.
The outcomes of this exploration program could significantly influence the terms and progress of these negotiations.