SOUTH AFRICA: Kinetico Energy Completes Pilot Production Well Workover

Perth-based energy exploration company Kinetiko Energy Limited has announced the successful completion of a well workover program at well KA-03PTR and KA-03PT2 at its Amersfoort project.

As a result of being granted a bulk gas production and removal permit, Afro Energy (JV of Kinetiko 49% and Badimo Gas 51% of South Africa) commenced the planning and preparation of a short-term pilot gas production program whereby produced gas from well KA-03PTR and possibly well KA-03PT2 (near Amersfoort) could be sold to CNG trader(s) for transportation from the well site for distribution to industries in the Johannesburg region.

It was determined as part of this planning that the two wells should undergo workovers to maximise gas flow rates and recovery. Completed well workover processes included the following:
1. International contractors Franklin Electrical/Endress Hauser were engaged to refurbish, replace or upgrade, where necessary, the metering and recording equipment on the existing flow skid, water pipe, downhole pump, electrical cable, level probes & cables, pipe centralisers and any other equipment in poor condition;
2. Downhole equipment in Well KV-04PT in the Volksrust area, which was newly installed in 2013 with limited use since, was pulled (i.e. the re-use of water pipe, centralizers and electrical cable from well-KV04PT) for use in the well workover;
3. Groundwater Practitioners, which did the workover on well KA-03PTR in 2018 during the Endress Hauser equipment test, was contracted to pull and retrieve the downhole pipe and equipment at well KV-04PT and to run the retrieved pipe and equipment in well KA-03PTR.

Afro Energy is currently in advanced negotiations with potential gas off-takers for small and intermittent gas production from Well KA-03PTR and possibly well KA-03PT2 where they will purchase gas at an onsite transfer point, compress the gas to the required pressure utilising their own compression equipment and transfer same to their CNG trailers for transportation to existing gas-based industries in the Johannesburg and Witbank regions.

The Company will immediately commence flow rate and equipment testing of well KA-03PTR. The Company intends to apply for full production rights for ER56 as soon as possible after the commencement of production of well-KA 03PTR and seek certification of maiden gas reserves.