Kinetiko's South Africa License Shows Promising Coal Seam Gas

Kinetiko Energy has said that Volksrust licence of the Amersfoort Project, South Africa has shown indications of higher gas quantity than earlier expected.

The company has finished three core holes and two more is in the state of progress. In total, eight exploration core holes are planned on the Volksrust licence, with completion expected in the first quarter of 2013.

The pilot production rig is expected to spud the first production test well shortly, the company said. The first three pilot production wells would commence in October and results would be assessed in the first quarter on next year.

A Transnet gas pipeline traverses the north eastern section of the Volksrust licence area and offers a strong potential gas distribution option, should gas resources become economic.