Kinetiko Energy Ltd (ASX: KKO) (Kinetiko or the Company) is developing an energy solution for South Africa focused on commercialising 100% owned advanced shallow conventional gas projects in the Mpumalanga Province. Kinetiko is pleased to announce that is has received firm commitments from professional and sophisticated investors to raise up to $2,203,000 (before costs) through a placement (“Placement”). The Placement was not underwritten and was strongly supported by the largest Shareholders and Directors.
As part of the Placement, the Company has also negotiated a debt conversion of a loan in the amount of $500,000 via the issue of new fully paid ordinary shares in the Company (“Debt Conversion Shares”) on the same terms as the Placement (“Loan”).
Executive Chairman, Adam Sierakowski commented:
“The successful capital raising again demonstrates the Company’s commitment by its major stakeholders to support the journey of delivering a world class on shore gas discovery to development outcomes. The next valuable milestone is establishing through production test wells drilling commercial gas flowrates and depletion curves. This funding supports the production test well currently underway at the Brakfontein site with initial results expected to be delivered in July 2025.
The Company continues to grow its technical knowledge in this unique geological setting and engage global oil and gas experts and is extremely confident the next production test wells will be successful.”
About us:
About Kinetiko Energy
Kinetiko Energy is a gas exploration company with a focus on advanced onshore shallow conventional gas opportunities in South Africa. Kinetiko's tenements are located in South Africa's primary power- producing region, near aging coal-mired power stations and infrastructure. As South Africa shifts towards modern power solutions, the gas from Kinetiko's deposits is expected to provide base load power and act as backup to renewables as part of the country's long-term energy future. The Company has achieved maiden gas reserves with positive economics and has 6 trillion cubic feet (Tcf) of 2C contingent resources (alternatively described as having 2.8 Tcf of 1C contingent resources), establishing a substantial world-class onshore gas project. Kinetiko’s vision is to commercialise an energy solution for South Africa.
Contact details:
Mark Flynn
Investor Relations and Media
[email protected]
0416068733