Perth based Kinetiko Energy Ltd is an early mover, onshore gas explorer in the Southern African energy markets and is please to update the market as follows:

• Exploration activities recommence with further drilling started on the Amersfoort Project northern licence (56ER);
• The EWP (Exploration Work programme) will drill and test 3 new pilot test wells on the 56ER by December, drilling water monitoring holes and revisiting existing test locations not previously completed.
• The EWP is designed to establish further gas flow testing on 56ER with the objective of enabling the independent certification of additional resources and potentially maiden reserves.
• The company continues negotiations with several potential customers for the gas that is being produced from 56ER.
The objectives for the three pilot wells (Figure 1) are:
• KA 06PT will be located close to the exploration core hole KA 06c which spontaneously flowed significant quantities of gas. Desorption testing of the coals encountered high levels of gas. Wireline logging of the core hole also indicated wide zones with gas indications (“density log cross overs”) in sandstones above and below the coal seams.
• KA 03PT2 will be located close to the KA 03PT pilot well that flowed at a stabilised rate of 350,000scf/d. Flow testing of the new pilot well will function as a “2 spot” flow test in conjunction with the previous well, providing further data on eventual production parameters.
• KA 07PT will be located near the previous pilot well in the vicinity that experienced technical problems with localised hole collapse in a zone of crumbling dolerites. Despite these problems high gas pressures were observed. The wireline logging of the adjacent core hole in this locality also had extensive indications of gas in the sandstone sequences.

Pilot Test Wells
Five exploration pilot test wells have been drilled and two continue to be tested on the Northern Licence (56ER). KA-03PT certified test results were announced to the ASX in March 2013. Initial down hole pump problems with KA-1OPT were overcome with a redrill and KA-10PTR has successfully flowed gas.