Kinetiko Energy has begun drilling a key production test well in South Africa, advancing its transition from exploration to gas production with plans for a pilot LNG plant by late 2026.
- Drilling commenced on production test well 271-KA03PT10 at Brakfontein
- Well to form part of cluster supplying gas to pilot LNG plant planned for late 2026
- Optimised drilling protocols aim to improve gas flow and reservoir performance
- Non-binding terms sheet signed with FFS Refiners for LNG supply collaboration
- 6 trillion cubic feet (TCF) contingent methane resource underpins growth potential
Kinetiko Advances Production Testing in South Africa
Kinetiko Energy Ltd (ASX, KKO) has taken a significant step forward in its South African onshore gas ambitions with the commencement of drilling at production test well 271-KA03PT10, located at Brakfontein in the Mpumalanga Province. This well is strategically positioned adjacent to five historic gas-producing wells, forming the nucleus of a cluster that will supply gas to a planned pilot liquefied natural gas (LNG) plant expected to be commissioned by late 2026.
The drilling program incorporates optimised protocols developed from detailed analysis of previous wells, including reduced water volumes and controlled down-hole pressure, aiming to overcome earlier challenges related to restricted permeability and gas flow. These refinements reflect Kinetiko’s commitment to enhancing deliverability and reliability as it transitions from exploration to production.
Strategic Collaboration and Resource Upside
In parallel with drilling activities, Kinetiko has executed a non-binding terms sheet with FFS Refiners (Pty) Ltd, outlining a phased approach to co-developing a pilot gas production field and securing LNG supply to South Africa’s domestic market. This collaboration signals growing investor and industry confidence in the region’s onshore gas potential, particularly as South Africa seeks to diversify its energy mix away from aging coal-fired power stations.
Kinetiko’s existing contingent resource base stands at an impressive 6 trillion cubic feet (TCF) of methane, equivalent to roughly one billion barrels of oil. The current five-well testing program, including well 271-KA03PT10, is expected to unlock additional gas volumes and convert prospective resources into contingent resources, thereby de-risking future drilling campaigns and accelerating the company’s path to commercial production.
Positioning Amid South Africa’s Energy Transition
As South Africa intensifies its focus on cleaner energy solutions, Kinetiko’s onshore gas projects stand out for their scale and simplicity of gas handling, distinguishing the company from peers focused on helium or smaller methane plays. The pilot LNG plant, supported by the Brakfontein gas cluster, represents a tangible step toward delivering domestically produced, scalable gas supply to support base load power and renewable energy backup.
Executive Chairman Adam Sierakowski highlighted the significance of the drilling phase, noting that the optimised methods are designed to achieve consistent and enhanced gas deliverability. He also positioned Kinetiko’s resource as a cornerstone in South Africa’s broader energy transformation, as investor attention grows around the country’s helium and methane basins.
With flow test results expected in August 2025, the market will soon gain clearer insight into the commercial viability of Kinetiko’s resource. The company’s progress underscores a broader momentum in South Africa’s onshore gas sector, where cross-border investment and corporate activity are reshaping the energy landscape.
Bottom Line?
Kinetiko’s drilling progress and LNG pilot plans mark a pivotal moment in South Africa’s energy shift, with upcoming flow test results set to define the next growth phase.
Questions in the middle?
- Will the flow test results confirm commercial gas deliverability as anticipated?
- How will the joint development agreement with FFS Refiners evolve into a definitive LNG supply contract?
- What impact will Kinetiko’s production have on South Africa’s broader energy market and peer companies?