Strong Gas Flows Boost Kinetiko’s South African Project Viability Amid Development Risks
Kinetiko Energy has reported a strong commercial gas flow from its Brakfontein well, exceeding prior reserve flow rate assumptions and reinforcing the project's economic viability.
- Production test well 271-KA03PT10 achieves sustained 92 Mscfd gas flow over 16 days
- Methane content recorded at an exceptionally high 99%
- Flow rate significantly exceeds independent reserve estimates requiring 50 Mscfd for viability
- Testing underway at second well 271-KA03PT06 with peak flow of 1,600 Mscfd recorded
- Results support plans for micro LNG pilot plant construction in 2026
Strong Gas Flow Exceeds Expectations
Kinetiko Energy (ASX, KKO) has announced encouraging results from its production test well 271-KA03PT10 located in the Brakfontein area of South Africa’s Mpumalanga Province. After 16 days of continuous testing, the well delivered a sustained gas flow rate of 92 million standard cubic feet per day (Mscfd), significantly surpassing the 50 Mscfd flow rate benchmark set by independent certifier Sproule B.V. as the threshold for commercial viability.
Adding to the positive outlook, the gas produced from the well contains an exceptionally high methane concentration of 99%, which bodes well for the quality and marketability of the resource. Over the testing period, a total of 1,422 million standard cubic feet (Mscf) of gas was recovered, providing valuable data to refine reserve estimates and economic models.
Implications for Project Development
The well 271-KA03PT10 is part of a seven-well production cluster near historic wells at Brakfontein, which is planned to supply gas to a micro liquefied natural gas (LNG) pilot plant slated for construction in 2026. The strong flow rates achieved through optimized drilling procedures suggest that the cluster could deliver more robust production than previously anticipated, potentially enhancing the project's overall economics and scalability.
Meanwhile, testing has commenced on a second production test well, 271-KA03PT06, where an initial choke test recorded a peak gas flow of 1,600 Mscfd. Flow test results for this well are expected in October 2025, and they will be critical in confirming the cluster’s capacity and informing future development plans.
Strategic Outlook and Next Steps
Kinetiko’s Executive Chairman, Adam Sierakowski, highlighted the significance of these results, noting that the flow rates and high methane content support the commercial viability of the Brakfontein cluster and underpin the company’s vision to provide a reliable energy solution for South Africa. The ongoing flow tests will help determine depletion curves and production life, essential for planning the number of wells required and the timing of further development.
With 6 trillion cubic feet of contingent resources already identified, these updated flow test results could lead to an upgrade in reserves classification, strengthening Kinetiko’s position in the natural gas sector. The company’s focus on shallow conventional gas near existing infrastructure positions it well to contribute to South Africa’s energy transition, providing a cleaner alternative to aging coal-fired power stations.
As the company continues to refine its data and advance its pilot plant plans, investors and stakeholders will be watching closely for the upcoming results from well 271-KA03PT06 and subsequent development milestones.
Bottom Line?
Kinetiko’s strong flow test results mark a pivotal step toward commercialising South Africa’s onshore gas potential.
Questions in the middle?
- Will the flow test results from well 271-KA03PT06 confirm or exceed the initial peak flow?
- How will updated flow data impact reserve reclassification and project financing?
- What are the timelines and capital requirements for the micro LNG pilot plant construction?
