Can Kinetiko’s Drilling Optimisation Sustain Breakthrough Gas Production?

Record Gas Flow Signals Breakthrough at Brakfontein

Kinetiko Energy Ltd (ASX, KKO) has announced a significant operational milestone with its latest production test well, 271-KA03PT06, at the Brakfontein project in South Africa’s Mpumalanga Province. The well achieved a peak gas flow of 1,600 thousand standard cubic feet per day (Mscfd) during choke testing, a figure that more than triples the best historical test from 2013 and quadruples the flow from a recent well tested in August 2025.

Optimised Drilling Procedures Drive Performance Gains

This breakthrough is attributed to the implementation of optimised drilling procedures developed in collaboration with flow assurance experts Oilfield Technologies Australia. Adjustments such as reduced water volume, elimination of high-viscosity foam, and controlled down-hole pressure have addressed permeability challenges identified in earlier wells. The success of these methods not only validates the new approach but also suggests that earlier wells might benefit from remediation to enhance their productivity.

Extended Testing to Confirm Stable Production

Alongside the new well, extended flow testing continues on well 271-KA03PT10, with gas flows increasing as de-watering progresses and wellhead shut-in pressure exceeding 13 Bar. These tests aim to establish a stable flow rate, critical for confirming the commercial viability of the gas resource. The results will inform the development of the initial cluster of producing wells that will supply gas to Kinetiko’s planned pilot liquefied natural gas (LNG) plant.

Strategic Importance for South Africa’s Energy Transition

Kinetiko’s shallow conventional gas projects are strategically positioned near South Africa’s aging coal-fired power stations, offering a cleaner, more flexible energy source to support the country’s transition to modern power solutions. The pilot LNG plant aims to demonstrate the commercial potential of these resources, which include 6 trillion cubic feet of contingent gas resources, positioning Kinetiko as a key player in South Africa’s evolving energy landscape.

Looking Ahead

With the production test well program completed on time and budget, Kinetiko is poised to leverage these technical advances to accelerate its production well drilling program. The company’s next updates will focus on stabilised flow rates from ongoing tests and progress toward commissioning the pilot LNG plant, milestones that will be closely watched by investors and industry observers alike.