Kinetiko Energy (ASX:KKO) Maps Brakfontein Production Route and Strengthens Funding

Aditi Sarkar

24 October 2026 12:00 AM AEDT

Kinetiko Energy (ASX:KKO) Maps Brakfontein Production Route and Strengthens Funding

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Highlights

Field Development Plan adopted for Phase 1 of the Brakfontein Rolling Cluster.
Bulk Sampling Permit application to be submitted to PASA at the end of October 2026.
Firm commitments received for an A$5.4 million placement at $0.03 per share.
Co-operation agreement with Mulilo to deliver about A$1.26 million in non-dilutive funding.

Kinetiko Energy Ltd (ASX:KKO), which is developing shallow conventional gas projects in South Africa’s Mpumalanga Province, published its quarterly activities report for the period ended 30 September 2026. The quarter marked a shift in the company’s focus from exploration toward production, with the adoption of a Field Development Plan (FDP) for its Brakfontein project, a A$5.4 million placement and a non-dilutive funding agreement. The company also disclosed no accidents, injuries, health or environmental incidents across about 3,651 person-hours worked over the reporting period.

Field Development Plan & Permitting Progress

On 1 July 2026, Kinetiko adopted an FDP for Phase 1 of the Brakfontein Rolling Cluster, describing it as a major milestone in its transition from explorer to gas producer. The plan is based on existing wells producing high-methane gas with minimal impurities, which the company says simplifies processing and supports an accelerated start-up. The gas sits in sandstone above coal seams, does not require fracking and is not a coal bed methane play.

Following adoption of the FDP, the company began preparing production permitting applications. After the quarter, it advised that its Bulk Sampling Permit application will be submitted to the Petroleum Agency of South Africa (PASA) at the end of October 2026, with grant anticipated in Q1 2027. A Production Right application covering all of Exploration Right 271 is also being prepared, and the first stage of the supporting Environmental Impact Assessment, the drilling of water monitoring wells, is complete.

Concept design for the Phase 1 compressed natural gas (CNG) cluster is complete and detailed engineering is in progress. A preferred supplier for the modular CNG facility was shortlisted, with contract award and front-end engineering scheduled for Q4 2026. Three potential sites have been shortlisted for the next well, with drilling planned for early 2027.

Capital Raising and Additional Funding

Across the reporting period, Kinetiko received firm commitments for an A$5.4 million placement (before costs) of about 180 million shares at $0.03 per share. Tranche 1 of 50 million shares ($1.5 million) was issued on 6 August 2026, while Tranche 2 of 130 million shares ($3.9 million) is yet to be issued and continues to be subject to shareholder approval. The raise was cornerstoned by Talent 10 Holdings, an entity associated with non-executive director Mxolisi Mgojo, which committed $3.0 million. Proceeds are intended mainly for Phase 1 development at Brakfontein, targeting first commercial gas in late 2027, and further exploration drilling.

Wholly owned subsidiary Afro Energy also executed a Co-operation and Settlement Agreement with Mulilo, under which it will receive the Rand equivalent of A$1.26 million in non-dilutive cash. The agreement resolves overlapping land use with the planned Newcastle wind energy facility and covers an 18.54 km² exclusion zone, about 1.1% of Exploration Right 270. Afro Energy also holds a right of first refusal to supply natural gas if gas-fired generation is procured for the wind project.

Cash Position & Corporate Matters

Kinetiko held about $1.127 million in available funds at 30 September 2026, comprising $816k in cash and $311k in joint venture balances and funds advanced by FFS Refiners. Net cash used in operating activities for the quarter was $730k. The company’s Joint Development Agreement with FFS Refiners continues to be engaged in support Phase 1a activities, with FFS having committed about A$2.58 million in Phase 1a funding.

After the quarter, the business stated it had finalised the search phase for a new Chief Executive Officer, with three candidates shortlisted and selection expected in October 2026. It is also progressing land access compensation discussions with other renewable energy developers whose projects may overlap its exploration rights.

What the Update Establishes

Kinetiko’s September quarter centred on laying the groundwork for gas production at Brakfontein, supported by the adopted FDP, advancing permits and engineering. Funding from the placement and the Mulilo agreement adds to its resources, though completion of Tranche 2 continues to be subject to shareholder approval. Submission of the Bulk Sampling Permit application, CEO selection and the CNG facility contract award are near-term milestones to watch.

FAQs

Q: Where are Kinetiko’s gas projects located?

A: In the Mpumalanga Province of South Africa.

Q: What did Kinetiko adopt over the reporting period?

A: A Field Development Plan for Phase 1 of the Brakfontein Rolling Cluster.

Q: When does the company target first commercial gas?

A: Late 2027, according to the stated use of placement proceeds.

Q: How much was raised in the placement?

A: A$5.4 million before costs at $0.03 per share, with Tranche 1 of $1.5 million issued and Tranche 2 of $3.9 million yet to be issued.

Q: What is the Mulilo agreement worth?

A: The Rand equivalent of about A$1.26 million in non-dilutive cash consideration.

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