Australia's Kinetiko Energy Finds Success in South African CBM Project

Perth based energy firm Kinetiko Energy Limited has reported early success from its initial exploration program underway at the Amersfoort coal bed methane project in South Africa.

The company said that the eight-hole exploration drilling program on Amersfoort will be expanded by a further two exploration holes after Kinetiko received strong initial results. These results included hole KA-06 spontaneously emitting methane gas flows and strong gas shows from other holes in the program.

Kinetiko will complete its planned program of exploration drilling of at least 16 holes over both Amersfoort and Volksrust tenements by mid-2012. The company now plans to develop pilot production wells to test formation permeability and measure gas flow characteristics. Given the strong results from exploration,

Kinetiko plans to develop up to eight Pilot Production wells on Amersfoort, this is more than double the number of the original plan. Kinetiko expects work to begin in July 2012, subject to government approval.