Kinetiko Energy Limited provided the following operations update on its Korhaan Project. Drill rigs B21 and B16 together with operational crews returned to site and resumed drilling development activities on 10 January 2022. Having successfully completed the drilling of the production section from 130m to 443m, significant preliminary gas flows were established under choked conditions.

Following a quick clean-up of the well, a suite of logging tools will be run to establish stratigraphy, locations of water and gas ingress and coal seams. The planned flow test on Korhaan-4 will be undertaken by running a pump into the well to pull down the water and allowing the maximum comingled gas flow. It is expected that the well-testing will be performed over a period of at least one week to enable time to establish pressure and flow stability in low-perm conditions. From the strength of the flow rate results and groundwater fractures identified, plans will then be made to conduct a more sophisticated completion solution involving the casing and perforation of only the gassy zones which is expected to further increase flow rates and minimise or negate water ingress.

Drill Rig B16 will proceed to drill out the cement plug/float shoe and continue straight into the production section to terminal depth. Similarly to Korhaan-4, the well test on Korhaan-5 will be undertaken by running a pump into the well to pull down the water and allowing the maximum comingled gas flow. It is expected that the well-testing will be performed over a period of at least one week to enable time to establish pressure stability in low-perm conditions.

From the strength of the flow rate results plans will then be made to conduct a more sophisticated completion solution involving the casing and perforation of only the gassy zones which is expected to further increase flow rates and minimize or negate water ingress.