Kinetiko Secures $2.2 Million to Accelerate South African Gas Development
Australian exploration and production company Kinetiko Energy has successfully raised $2.2 million through a strategic placement to directors and shareholders to advance its onshore gas project in South Africa’s Mpumalanga Province.
The funding round included the conversion of $500,000 of existing debt into equity, strengthening the company’s financial position for upcoming development activities. The proceeds will be strategically allocated across multiple areas: $1.48 million for exploration and development activities, $350,000 for corporate expenses, $350,000 for working capital, and $20,000 for capital raising costs.
Executive Chairman Adam Sierakowski emphasized that the next critical milestone involves establishing commercial gas flow rates and depletion curves through production test wells. The funding will support the ongoing production test well at the Brakfontein site, with initial results expected to be delivered in July 2025.
Kinetiko launched an ambitious five-well production test program in August 2024 to enhance understanding of the project’s geology and reserves. The comprehensive program also aims to identify additional resources and determine the optimal approach for developing the basin’s estimated 6 trillion cubic feet of gas reserves.
The South African gas project represents a significant opportunity in a region where energy security and domestic gas production are increasingly important priorities for economic development and energy independence.
Source: energycapitalpower.com