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Kinetiko cheers Volksrust CBM potential

by on November 14, 2012 3:14 am GMT
 

The coalbed methane (CBM) explorer announced on Wednesday that drilling on the Volksrust licence (the southern and largest of the two blocks making up the Amersfoort project) yielded about three metres of coal from hole KV-05 – the strongest initial core sample to date at the licence.

Kinetiko said this indicated the potential for high gas prospectivity in the southern tenement. In addition, the gas zones were occurring deeper in the core holes (with the current average hole depth being about 150 metres deeper than the northern block), which could mean greater gas volumes than originally assessed.

The Volksrust concession is also closer to pipelines than the northern Amersfoort block.

The company has completed two other core holes and two more are nearly complete – all of which had encouraging gas encounters from core samples or wire line responses.

The current exploration drilling programme is expected to continue through to the middle of next year, with a total of eight wells planned for the Volksrust licence.

Meanwhile, the company is also drilling a debut pilot production well on Amersfoort’s northern licence.

Plans for further production drilling will continue into next year, with Kinetiko aiming to book its first reserves in the first quarter of 2013.

The Amersfoort project lies 250 kilometres east of Johannesburg, in Mpumalanga (formerly Eastern Transvaal), South Africa. The region is recognised as a highly prospective area for CBM with well documented, gassy coal measures and with gassy sandstones overlying the coal horizons.

Kinetiko operates the two gas licences that make up the project, covering a total 1601 square kilometres, with a 49% interest. It is partnered with South Africa’s Badimo Gas.

An independent assessment of Amersfoort has estimated prospective resources of 2.4 trillion cubic feet of gas-in-place and a contingent resource of 1.5 tcf.