SOUTH AFRICA: Kinetiko Provides Korhaan Project Update

The three new wells of the Korhaan Project have been successfully spudded and each well has been drilled into the dolerite sills and Korhaan-4 has been cased to 150m and cementation operations are underway. Korhaan-4 well is expected to commence drilling into the gassy sandstone and underlying coal seams to TD within the next few days while well Korhaan-5 will start running casing imminently and continue drilling the production section.

The Korhaan-3 well is drilled to 102m and has been temporarily suspended in preference to an attempt to complete Korhaan-4 and Korhaan-5 before the end of the year. Drilling on Korhaan-3 is expected to be resumed in January 2022 after the Christmas shut-down period.

Very heavy thunderstorms with consequent lightning, hail and rain has resulted in substantial delays to the Company’s operations. This seasonal weather has been worse than normal. Following HSE Policy, requirements are to down-mast the drilling rigs once lightning approaches 20km from site. This has proven to be prudent given the high storm count which has swept drilling sites.

Preliminary gas flow rates will be assessed following the wireline logging and the barefoot completion of each well, and could be reassessed following the possible cased completion plan in 2022.

The company has completed the aeromagnetic survey which flew approximately 13,479 line kilometres covering 564km2, over selected portions of ER 270 and ER 272 which form the most Southern and Northern extensions of the Company’s exploration rights.

Results from the completed survey have been received and are anticipated to be processed during December and January 2022 and expectations are to build significantly on the existing 37 identified prospective gassy compartments and assist target further areas for well tests and pilot production fields.