How Will Kinetiko’s New Drilling Approach Unlock Gas for 2026 LNG Pilot?
Kinetiko Energy has begun drilling its third production test well at Brakfontein, applying revised techniques to boost gas recovery ahead of a planned 2026 micro LNG plant launch.
- Third production test well 271-KA03PT10 spudded at Brakfontein
- Revised drilling procedures aim to reduce permeability loss up to 85%
- Well to contribute to cluster supplying pilot micro LNG plant in 2026
- Current 6 TCF contingent gas resource expected to grow with testing
- Flow test results anticipated before July 2025
Kinetiko’s Strategic Drilling Milestone
Kinetiko Energy has initiated drilling on its third production test well, 271-KA03PT10, located in the Brakfontein area of South Africa’s Mpumalanga Province. This well is part of a five-well program designed to refine gas recovery techniques and better understand the reservoir characteristics of Kinetiko’s substantial onshore gas assets. The company’s focus on shallow conventional gas resources positions it as a potential key player in South Africa’s evolving energy landscape.
Optimizing Gas Recovery Through Innovation
Drawing on detailed laboratory studies and recommendations from Oilfield Technologies Australia, Kinetiko has adjusted its drilling protocols to address a critical issue identified in earlier wells: permeability loss caused by drilling fluids invading the formation. Tests revealed that such invasion could reduce gas permeability by as much as 85%, severely limiting flow rates. The new approach involves reduced water volumes, limited use of high-viscosity foam, and controlled down-hole pressure to mitigate these effects and enhance gas deliverability.
Linking Wells to a Pilot Micro LNG Plant
The Brakfontein well is strategically positioned near historic production test wells and existing infrastructure, enabling it to form part of a cluster that will supply gas to a pilot micro liquefied natural gas (LNG) plant expected to commence operations in 2026. This pilot project represents a crucial step toward commercialising Kinetiko’s gas resources and contributing to South Africa’s energy diversification efforts, particularly as the country seeks alternatives to aging coal-fired power stations.
Resource Growth and Future Development
Kinetiko currently holds a 6 trillion cubic feet (TCF) contingent gas resource, with expectations that the ongoing well testing program will expand this figure. The wells being drilled are deeper than previous tests, potentially unlocking additional reserves. In addition, the company plans remediation trials to improve gas flow in underperforming wells, which could further increase recoverable volumes. These efforts aim to convert a portion of the 5.8 TCF prospective resource into contingent resources, thereby de-risking future development and accelerating Kinetiko’s transition from exploration to production.
Looking Ahead
With flow test results from the third well anticipated before July 2025, Kinetiko is poised to provide the market with critical data on reservoir performance and gas deliverability. These insights will inform economic modelling for future field development and underpin the company’s ambitions to become a major gas supplier to South Africa’s power grid. The success of this program could mark a turning point in the country’s energy transition, leveraging domestic gas resources to support cleaner, more reliable power generation.
Bottom Line?
Kinetiko’s drilling advances signal a pivotal step toward unlocking South Africa’s gas potential and launching commercial LNG sales.
Questions in the middle?
- Will the revised drilling techniques consistently overcome permeability challenges in upcoming flow tests?
- How significantly could the contingent resource estimates increase following the completion of the five-well program?
- What are the timelines and scale prospects for expanding beyond the pilot micro LNG plant to full commercial production?
