KKO - Kinetiko Energy

[System]

Kinetiko Energy Limited (KKO) is an Australian company formed to pursue advanced coal bed methane opportunities in rapidly developing gas markets outside of Australia. As a result of a series of country by country evaluations of CBM potential, energy markets and infrastructure in Sub-Saharan Africa Kinetiko has focussed on the Republic of South Africa. The known gassy coalfields and extensive energy infrastructure of South Africa are considered by Kinetiko to be the preeminent locality for a nascent CBM industry in the region. CBM exploration and evaluation is in its infancy in South Africa. Gas seeps from historical coal and mineral exploration holes have been known for many decades but only within the last few years has tenure been granted to allow CBM evaluation drilling to commence.

The Amersfoort area of the Eastern Transvaal Coal Field between Johannesburg and Durban is one of the most prospective areas for CBM with well documented gassy coal measures. Kinetiko has a 49% equity in 2 onshore gas licences covering 1,800km² in the Amersfoort area. Under a farm out agreement with the other license equity holder, a South African company Badimo Gas Ltd, Kinetiko is the project operator. Independent oil and gas consultants Gustavson Associates of Boulder Colorado have estimated for the Amersfoort licences a CBM gas in place (GIP) resource of 1.7tcf of which 1.12tcf are estimated to be prospective resources.

http://www.kinetiko.com.au

 

[DB008]

Kinetiko Energy in pre open pending South African operations update

Fingers crossed there is some good news to come out of this one. It's been climbing the last few days, up 7% today alone. Announcement coming out on Friday 11th.

 

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The Amersfoort Project
Aim: improve Resource & Reserves within 18 months
Significant land position 1,601Km² in high gas demand area
800+ existing exploration drill holes in the Amersfoort area
Commercially and technically astute partnership with JV partner
No “fracking” – these are high permeability targets!
Major commercialisation potential angles
Safe, environmentally aware corporate citizens – building credibility

Highlights
Amersfoort Project (Kinetiko 49%) Prospective Resources Gas In Place (GIP) 1.7tcf
Other Kinetiko land (Kinetiko 100% TCPs) Prospective Resource GIP of 9.3tcf (P50)
Amersfoort exploration drilling has completed 10 holes to date
Encouraging CBM data and strong indications of conventional gas above CBM
Pilot production wells – commencing by September 2012
Confident of booking 3P Reserves from pilot production wells
$5m cash and fully funded next 14 months

Amersfoort Tenure registered
Kinetiko 49% equity (JV Operator)
Badimo 51% equity
Kinetiko to spend first AUD$4m
Reimbursed past costs to Badimo
Option to increase equity (BEE must hold min. 26%)

Amersfoort Exploration results to date
Sub Bituminous coal to 5m cumulative thickness, plus gassy mudstones
Depth ~400m and strong indications of good gas content and saturation
148 core samples (desorption) to date from 8 core holes
High permeability
Wireline logging and early water quality testing
Very encouraging results:
Coal seams & thick carbonaceous mudstones
Strong indications of conventional gas capped by dolerite sills
Gas being still being flared from KA 06
Conventional gas was not included in existing Resource estimates




Around 65m shares on issue, a MC of $13m and fully funded for the next 14 months makes KKO an attractive proposition.
Watchlisted.

 

[springhill]

As mentioned previously it was watchlisted, just havent been able to keep a close eye on those watchlists over the last 6 months. KKO moving positively, yet steadily, over the last month and a half.

Latest annoncement.
EXPLORATION CORING UPDATE AMERSFOORT PROJECT
• Exploration on the southern licence (Volksrust, 38ER) of the Amersfoort Project continues with strong intersections of gas observed in each of the nine completed exploration core holes;
o Each core hole has yielded gassy core samples (carbonaceous mudstones and coals);
o Wireline logs from the southern licence are consistent with the results from the northern license in indicating widespread gas accumulations in the sandstone sequences above and in some cases below the coal beds;
o The southern licence core holes have an average total depth of 610 metres (compared to ~410m on the northern licence), and should have a greater pressure regime and thus propensity for higher gas volumes.

• This news enhances the prospects that a potential gas field could be extensive across the entire Amersfoort Project current area of 1,601Km² (Joint Venture with Badimo Gas)
• As result of encouraging results an additional pilot test well program (5 test wells) is planned to commence by mid Q2 on the southern licence