Kinetiko Energy Ltd has announced that drilling for its production test well 271-KA03PT10 in Brakfontein, South Africa, has commenced using optimised drilling protocols. The well, located adjacent to five historic gas-producing wells, is set to join a cluster that will feed a pilot micro LNG plant expected to commence operations in late 2026. With the conductor casing already set and cemented to a depth of 15 metres in May, the current drilling phase is aimed to reach terminal depth within three weeks, with initial gas flow results anticipated in August 2025. The company has refined its drilling design by reducing water volume, eliminating the use of HV foam, and maintaining controlled down-hole pressure—all of which address issues with permeability and gas flow experienced in previous wells. A detailed production test program will individually flow-test each well, capturing critical data on flow rates, reservoir pressure, and depletion curves. These technical insights are expected to enhance gas deliverability and help unlock additional resources, positioning Kinetiko Energy as a key player in South Africa’s onshore gas sector. In addition, Kinetiko Energy has executed a non-binding terms sheet with FFS Refiners (Pty) Ltd. This agreement outlines a framework for securing LNG supply to the South African market and includes plans for a joint development agreement that will facilitate the co-development of the pilot gas production field at Brakfontein. The company’s resource base is also noteworthy, with over 6 trillion cubic feet of contingent resources and plans to expand this significantly through its ongoing five-well testing program. These advancements are poised to de-risk future drilling campaigns and support the company’s transition from exploration to production. The news presents several bullish indicators for the market. The implementation of optimised drilling practices, the strategic location of the well near established production zones, and the progression towards an operational LNG plant are all positive signals that could drive revenue growth and improve gas deliverability. Additionally, the non-binding agreement with FFS Refiners (Pty) Ltd strengthens the company’s potential for early monetisation. However, there remain bearish concerns regarding the reliance on new drilling techniques to achieve consistent performance and the possibility of delays in final project commissioning. Despite these risks, the overall outlook suggests that Kinetiko Energy Ltd is well-positioned to capitalize on South Africa’s evolving energy priorities and growing investment in onshore gas assets.