Kinetiko Starts Drilling Second Well, Eyes LNG Supply by 2026
Kinetiko Energy has commenced drilling its second production test well at Brakfontein, applying optimized protocols following promising initial results. This marks a key step toward supplying gas to a pilot LNG plant planned for late 2026.
- Second production test well 271-KA03PT06 drilling underway at Brakfontein
- Optimized drilling techniques applied to improve gas flow and reservoir performance
- Extended flow testing on first well KA03PT10 ongoing with results expected soon
- Non-binding terms sheet signed with FFS Refiners to supply LNG to South Africa
- Program aims to grow contingent resources and accelerate transition to production
Building on Early Success
Kinetiko Energy has taken a decisive step forward in its South African gas project by spudding its second production test well, 271-KA03PT06, at the Brakfontein site. This move follows encouraging early results from the first well, KA03PT10, which demonstrated promising gas flows under newly optimized drilling protocols. The company is leveraging lessons learned to refine its approach, aiming to unlock more consistent and higher-quality gas production.
Optimized Drilling and Testing
The new well incorporates adjusted drilling parameters such as reduced water volume, elimination of high-viscosity foam, and controlled down-hole pressure. These changes respond directly to challenges encountered in earlier wells, particularly issues with permeability and gas flow. Extended flow testing is underway on KA03PT10 to establish stable production rates, with results anticipated in the coming weeks. These tests are critical to validating reservoir performance and informing future development plans.
Strategic Partnership and Market Potential
Kinetiko has also formalized a non-binding terms sheet with FFS Refiners (Pty) Ltd, outlining a collaborative framework to supply liquefied natural gas (LNG) to the South African market. The plan includes co-developing a pilot gas production field at Brakfontein, which will feed a micro LNG plant targeted for late 2026. This partnership positions Kinetiko at the forefront of South Africa’s evolving energy landscape, where natural gas is expected to play a pivotal role as a cleaner alternative to coal.
Resource Growth and Future Outlook
The company’s current contingent resource stands at 6 trillion cubic feet (2C), with expectations for significant growth as testing progresses. The updated drilling and remediation techniques could unlock additional gas volumes from previously underperforming wells, potentially converting prospective resources into certified reserves. This progression not only de-risks Kinetiko’s asset base but also accelerates its transition from exploration to production, reinforcing its strategic importance in South Africa’s energy transition.
Looking Ahead
With drilling expected to reach total depth within weeks and initial gas flow results due by mid-September, the coming months will be pivotal. The outcomes will influence the scale and pace of Kinetiko’s development plans and its ability to deliver commercial LNG sales. Investors and industry watchers will be closely monitoring these results as the company seeks to establish itself as a key energy supplier in the region.
Bottom Line?
Kinetiko’s next flow test results will be a critical milestone in validating its gas production potential and shaping South Africa’s LNG future.
Questions in the middle?
- Will the extended flow tests confirm stable and commercially viable gas production rates?
- How quickly can Kinetiko formalize agreements with FFS Refiners and scale LNG production?
- What impact will optimized drilling have on converting prospective resources into reserves?